Economy Suffers Rude Shock, GDP Decelerates to 2.35%

Nigeria’s economy is under huge pressure with its real Gross Domestic Product (GDP) plunging to 2.35 per cent in the second quarter of 2015, compared to 6.54 per cent in the same period last year, the National Bureau of Statistics (NBS) said yesterday.
A country’s GDP is one the primary indicators used to gauge the health of a country’s economy. It represents the total naira value of all goods and services produced over a specific time period – you can think of it as the size of the economy.
The country’s economic growth rate for the second quarter represents a 40 per cent decline from the 3.96 per cent recorded in the first quarter of this year.
The GDP is a measure of economic activity which captures the value of goods and services that a country produces during a given period.
The Statistician-General of the Federation/Chief Executive Officer, NBS, Dr. Yemi Kale, while releasing the GDP report for the second quarter of 2015 on his Twitter account, said, “Real GDP grows by 2.35 per cent in the second quarter of 2015 from 3.96 per cent in first quarter of 2015 and 6.54 per cent in second quarter of 2014.”
He said oil GDP grew by -6.79 per cent in the second quarter compared to -8.15 per cent in first quarter of 2015 and 5.14 per cent in the second quarter of last year.”
Kale said, “Electricity, gas, steam, etc grew by -11.61 per cent in second quarter of 2015, compared to -27.92 per cent in first quarter of 2015 and -20.57 per cent in second quarter of 2014. Manufacturing grew by -3.82 per cent in second quarter of 2015, compared to -0.70 per cent in first quarter of 2015 and 14.01 per cent in second quarter of 2014.
“Industry grew by -3.31 per cent in second quarter of 2015 compared to -2.53 per cent in first quarter of 2015 and 8.97 per cent in second quarter of 2014. Accommodation and food services grew by -8.97 per cent in Q2 2015 compared to 26.66 per cent in Q1 2015 and 23.86 per cent in Q2 2014.”
Public administration grew by -10.64 per cent, compared to -12.53 per cent in first quarter of 2015 and 1.17 per cent in the second quarter of last year, while mining and quarrying grew by -6.62 per cent in second quarter of 2015, compared to -7.91 per cent in first quarter of 2015 and 5.32 per cent in second quarter of 2014.
Non-oil GDP growth fell to 3.46 per cent in the second quarter, compared to 5.59 per cent in the first quarter of the year and 6.71 per cent in the second quarter of 2014, the NBS said
“Agric GDP grew by 3.49 per cent in second quarter of 2015 compared to 4.70 per cent in first quarter of 2015 and 3.68 per cent in second quarter of 2014. Finance and insurance grew by 6.41per cent in second quarter of 2015 compared to 9.01 per cent in first quarter of 2015 and 7.00 per cent in first quarter of 2014.”
According to the report, Construction grew by 6.42 per cent, down from 11.17 per cent in the first quarter of 2015 and 10.70 per cent in second quarter of 2014.
“Information and communication grew by 6.26 per cent in second quarter of 2015 compared to 9.49 per cent in first quarter of 2015 and 7.95 per cent in first quarter of 2014. Services grew by 4.67 per cent in second quarter of 2015 compared to 7.04 per cent in Q2 2015 and 6.54 per cent in second quarter of 2014.”

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