Nigeria’s economy exited recession in the fourth quarter of 2020, recording its first growth in three quarters as coronavirus-linked lockdown was lifted across the country, the National Bureau of Statistics said in a report Thursday.
The report said Gross Domestic Product (GDP) grew 0.11 per cent in the three months between October and December from a year earlier.
The economy slipped into recession in the third quarter of 2020 with a decline of 3.6 per cent, having contracted 6.1 per cent in the second quarter, leading to Nigeria’s second recession in five years.
For the full year 2020, the economy contracted 1.92 per cent, better than the International Monetary Fund projection.
The NBS said Thursday that although the growth was weak, it reflects the gradual return of economic activities following the easing of restricted movements and limited local and international commercial activities in the preceding quarters.
“As a result, while the Q4 2020 growth rate was lower than growth rate recorded the previous year by –2.44% points, it was higher by 3.74% points compared to Q3 2020,” the NBS said.
On a quarter on quarter basis, real GDP growth was 9.68% indicating a second positive consecutive quarter on quarter real growth rate in 2020 after two negative quarters.
However, overall in 2020, the annual growth of real GDP was estimated at –1.92%, a decline of –4.20% points when compared to the 2.27% recorded in 2019.
Meanwhile, despite wobbling out of recession, Nigeria’s headline inflation rose to 16.47 per cent in January 2021 while food inflation also rose to 20.57 per cent, from 19.56 per cent in December, according to a report by the statistics bureau earlier on Tuesday.
By Oladeinde Olawoyin, Premium Times
NIGERIA EXITS RECESSION – The Facts
Nigeria achieved +9.68% QoQ growth in Q4 2020, the best Q4 growth in 8yrs.
Nigeria achieved +0.11% YoY growth in Q4 2020, the best in COVID19 period.
Nigeria ends Y2020 with a -ve growth of -1.92%, beating 2016 record of -1.58%.
Q4 2020 GDP Growth Rate, QoQ
🇸🇦Saudi Arabia: 2.8%