RECENT developments in the Nigerian economy where the contraction in the GDP slowed considerably in Q1, 2017 is an indication that the country will likely exit the current recession between Q2 and Q3, 2017, analysts at FSDH Merchant Bank, have said.
This, according to them, in a weekly review of the economy tagged, ‘Nigerian Economy Exiting Recession’ is hinged on the latest data released by the National Bureau of Statistics, NBS, which showed that the GDP contracted by 0.52 per cent, mainly due to the decline recorded in mining and quarrying, and trade sectors which countered the recovery in the non-oil sector of the economy.
The investment banking house stated that a review of the Purchasing Managers Index (PMI) showed that production activities are already picking up in Nigeria, while the improvement in the crude oil production and the expectation that the crude oil price will remain above $50/b should lift the Oil GDP.
The Nigerian economy entered into a recession in Q2 2016 following two consecutive quarters of GDP contraction. The economy contracted further in Q3 2016 and Q4 2016. Thus, the Nigerian economy contracted by 0.67 per cent, 1.49 per cent, 2.34 per cent and, 1.73 per cent in Q1, Q2, Q3 and Q4 2016 respectively. The following factors pushed the Nigerian economy into a recession: drop in crude oil price and production, foreign exchange shortages, non-payment of workers’ salaries in the public sector, low electricity generation and low investors’ confidence in Nigeria.
SOURCE: http://www.vanguardngr.com/2017/05/nigeria-may-exit-recession-q3-report/
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