Economy
Nigeria Plunges Into Second Recession In Five Years
According to official figures published on Saturday by the National Bureau of Statistics, Nigeria has plunged into its second recession within five years.
The figures also indicate that the economy nosedived again in the third quarter of this year.
Eko Hot Blog also gathered that this year’s recession, largely occasioned by the economic fallout of the COVID-19 pandemic, is worse than that of 2016.
The NBS, in its Gross Domestic Product report for Q3, said the GDP, the broadest measure of economic prosperity, fell by 3.62 in the three months to September.
Economists consider two consecutive quarters of shrinking GDP as the technical definition of a recession.
For the first time in more than three years, the Nigerian economy shrank in the second quarter of this year as the GDP fell by 6.10 per cent, compared with a growth of 1.87 per cent in Q1.
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The NBS had in August noted that the economic decline in Q2 was majorly due to a decline in both domestic and international economic activity caused by nationwide lockdown measures aimed at containing the coronavirus pandemic.
It said the contraction in Q2 brought to an end the three-year trend of low but positive real growth rates recorded since the 2016/17 recession.
The economy, which shrank into recession in 2016 for the first time in 25 years took an upward spike in Q2 2017 when it posted a 0.7 per cent growth, but had taken a slow path to recovery before receiving a hammer blow when the coronavirus pandemic crippled economic activities at home and abroad for better part of Q1 to Q3.
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