Sunday 22nd October, 2017
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Economy moving out of recession - Presidency

Economy moving out of recession - Presidency

The Presidency has said that the just released 2017 Quarter 1 eco­nomic report is an encourag­ing indication that the Nige­rian economy is coming out of recession.

The National Bureau of Statistics (NBS) report showed that the economy shrank by 0.52 per cent dur­ing the period.

The Presidential Adviser on Economic Matters, Ad­eyemi Dipeolu, in a state­ment on Tuesday pointed out that growth had continued in agriculture and a posi­tive turnaround recorded in manufacturing and non-oil sectors, while a slowdown in negative growth rates is no­ticed in several sectors.

He said: “The latest fig­ures released by the National Bureau of Statistics show that the economy shrank by 0.52% in the first quarter of 2017 (Q1 2017).

“Although the economy remains in recession, this is the strongest performance in five quarters and shows a significant turnaround from the low of -2.34% reached in the third quarter of 2016 (Q3 2016).

“This is nearly two per­centage point improvement and also reflects the fact that the number of sub-sectors that experienced negative growth has almost halved falling from 29 sub-sectors for the whole of 2016 to 16 sub-sectors in Q1 2017.

“Agricultural growth re­mained in positive territory albeit growing at a slower rate of about 3.4%, no doubt due to seasonal factors.

“Growth in manufactur­ing on the other hand re­turned to positive territory after five quarters of negative growth. It grew by 1.36% in Q1 2017 after falling to a na­dir of -7.0% in Q1 2016.

“The solid mineral sector continued to justify the pri­ority given to it by the Fed­eral Government with high double digit growth for metal ores and quarrying at 40.79% and 52.54% respectively.

“Growth in the oil sec­tor remained negative at -11.64% although there was an over six percentage point improvement in its fortunes from the previous quarter.

“More significantly, the non-oil sector which ac­counts for about 90% of GDP returned to positive growth although at a marginal level of 0.72% in Q1 2017. This is the first positive growth in the non-oil sector since the last quarter of 2015.

“Headline inflation fell for the third month in a row to 17.24%, with core inflation also declining quite rapidly.

“However, food inflation remains of concern as it continues to trend upwards. This is mainly due to rising transport costs and other structural impediments to the movement of foods in the domestic market.

“The trade balance re­mained positive reflecting import contraction and rela­tively higher export revenues which grew year-on-year by up to 80.5%.