Nigeria’s overall Gross Domestic Product (GDP) has suffered setback, despite reversal of the negative balance of trade in the fourth quarter.
The National Bureau of Statistics, NBS on Tuesday, disclosed that the economy recorded an overall GDP growth rate of -1.9% year-on-year (YOY), which was a huge downturn against 2.3% recorded in 2019.
Nigeria entered recession on the third quarter of 2020, when the GDP recorded a negative growth of -3.62%, second consecutive quarterly negative growth after the -6.1% recorded in the second quarter 2020.
NBS also disclosed that exports and imports of goods and services fell by 27 percent and 35 percent respectively during the period.
Due to the declining rates of growth in exports and imports, a negative balance of trade (-30%), was also recorded during the period.
The NBS stated, “In Q3’20, Nigeria’s real GDP at basic prices grew by – 3.62 percent, on a year on year basis, making the consecutive quarter of negative real/GDP growth after -6.10 percent recorded in Q2’20 in Q4’20 however, growth turned positive recording 0.11percenr in Q4 YOY.
“Nevertheless, the negative quarterly growth rates recorded in Q2 and Q3 2020, resulting in annual growth rate – 1.92% for 2020, compared to 2.27% recorded in 2019”.
On export, the Bureau said in Q4’20, “real exports grew by -42% and -58% Year-on-Year; resulting in an annual growth rate of -27 or 42 percent points lower than 15% recorded in 2019.
“QoQ, Quarter on quarter, growth in real exports remaining negative from Q1’20 and Q4’20.”
Similarly, on export it stated, imports of goods and services also declined in real terms, recording -23% in Q3 and – 40% in Q4.
“On a QoQ basis, imports grew by 16 percent in Q3 but declined -4% in Q4’20.
“Due to declining rates of growth in exports and imports in 2020, the growth in net balance of trade (or net exports) was negative in Q3 and Q4 2020.
“On a YOY basis, the net trade balance recorded -52% growth rate in real terms in Q3 and -73% rate in Q4.
“This resulted in an annual growth rate of -30% in real terms.”
Ijeoma Njoku reporting, Obinwannem News
