Nigeria's economy shrank by 1.5% in 90 Days
The value of total amount of goods and services produced in Nigeria reduced by 1.5% in the last three months of 2016.
By implication, this means that the economy has been in a worse shape after it entered into a recession in the first half of 2016. It means the sum of consumer spending, investments, exports, and government spending has been on a downward slope within the period under review.
NBS said, "In the fourth quarter of 2016, the Nation's gross domestic product, contracted by -1.30% (year-on-year) in real terms, from N18,533.75 billion in the last three months of 2015 to N18,292.95 billion in the last three months of 2016. For the full year 2016, GDP contracted by -1.51%, indicating real GDP of N67,984.20 billion for the year."
The statistics office said the contraction reflects a difficult year for Nigeria, which included weaker inflation - which stands at 18% - induced consumption demand, an increase in pipeline vandalism, significantly reduced foreign reserves and a concomitantly weaker currency, and problems in the energy sector such as fuel shortages and lower electricity generation.
However, the silver lining is the strong growth rate shown by the non-oil sector which increased its share of GDP to 92.85%, from 91.94% in the fourth quarter of 2015.
The sector to weigh on non-oil growth the most, according to NBS, "was Real Estate, which declined by -9.27% and contributed to –0.77% points to year on year growth in total real GDP.”