The National Bureau of Statistics (NBS) on Saturday said the Nigerian economy has slumped into a second recession in more than three years.
The NBS said the economy slipped into recession at the end of the third quarter (Q3) which ended in September, disclosing that the county’s gross domestic product shrank 3.62% in the three months through September from a year earlier, compared with a 6.1% contraction in the previous quarter.
“Nigeria’s gross domestic product (GDP) recorded a growth rate of –3.62% (year-on-year) in real terms in the third quarter of 2020.
“Cumulatively, the economy has contracted by -2.48% While this represents an improvement of 2.48% points over the –6.10% growth rate recorded in the preceding quarter (Q2 2020), it also indicates that two consecutive quarters of negative growth have been recorded in 2020.
“Furthermore, growth in Q3 2020 was slower by 5.90% points when compared to the third quarter of 2019 which recorded a real growth rate of 2.28% year on year.
“The performance of the economy in Q3 2020 reflected residual effects of the restrictions to movement and economic activity implemented across the country in early Q2 in response to the COVID-19 pandemic.
“As these restrictions were lifted, businesses re-opened and international travel and trading activities resumed, some economic activities have returned to positive growth. A total of 18 economic activities recorded positive growth in Q3 2020, compared to 13 activities in Q2 2020,” it explained further.
“This rate was, however, lower relative to growth recorded in the third quarter of 2019 by –9.91% points but higher than the proceeding quarter by 6.19% points.
“For clarity, the Nigerian economy has been broadly classified into the oil and non-oil sectors: The contract marks the beginning of a full-blown recession and second consecutive contraction from -6.10 per cent recorded in the previous quarter of this year,” NBS said on Saturday.