According to the second quarter (Q2) GDP report, released by the National Bureau of Statistics (NBS) on Monday; the country’s Gross Domestic Product (GDP) declined by 6.10% (year-on-year) in real terms in Q2 2020.
The Gross Domestic Product (GDP) in real terms declined by 6.10% (year-on-year) in Q2 2020, thereby ending the 3-year trend of low but positive real growth rates recorded since the 2016/17 recession.
The performance recorded in Q2 2020 represents a drop of 8.22% points when compared to Q2 2019 (2.12%), and 7.97% points decline when compared to Q1 2020 (1.87%), according to the numbers contained in report.
The disruption caused by COVID-19 pandemic and crash in oil price are apparently responsible for the significant drop.
The latest GDP number also shows that Nigeria’s oil sector recorded –6.63% (year-on-year) in Q2 2020, indicating a decrease of –13.80% points relative to the rate recorded in the corresponding quarter of 2019.
The non-oil sector declined by –6.05% in real terms during the reference quarter (Q2 2020). This was the first decline in real non-oil GDP growth rate since Q3 2017.
The contraction recorded in the non-oil sector was –7.70% points lower, compared to the rate recorded during the same quarter of 2019. More so, the contraction represents –7.60% points compared to the first quarter of 2020.
The bureau believes that the decline was largely attributable to significantly lower levels of both domestic and international economic activity during the quarter, which resulted from nationwide shutdown efforts aimed at containing the COVID-19 pandemic.