Nigeria’s economy risks falling into recession after it shrank in the first quarter of 2016 as outputs in the manufacturing, financial, real estate, oil and gas fell significantly.
The nation’s Gross Domestic Product, which measures the output of an economy, contracted by 0.36 per cent from a year earlier, the National Bureau of Statistics said in an emailed statement on Friday.
The last time Nigeria recorded such a negative growth rate in GDP was in 1995 when it had a GDP grew by -0.3 per cent, according to World Bank statistics.
The NBS figures showed the GDP of -0.36 recorded in the first quarter of 2016 was lower by 2.47 percentage points from the growth recorded in the preceding quarter and also lower by 4.32 percentage points from the growth recorded in the corresponding quarter of 2015.
The report stated that almost all the sectors recorded a decline in output.
For instance, it said oil GDP slowed by -1.89 per cent, electricity and gas recorded -44.4 per cent, industries -5.49 per cent and manufacturing -7 per cent.
The report said, “In the first quarter of 2016, the nation’s Gross Domestic Product slowed by 0.36 per cent (year-on-year) in real terms.
“This was lower by 2.47 per cent points from growth recorded in the preceding quarter and also lower by 4.32 per cent points from growth recorded in the corresponding quarter of 2015. Quarter on quarter, real GDP slowed by 13.71 per cent.
“Mining and quarrying sectors slowed at 2.96 per cent (year-on-year) in Q1 2016, a relative improvement from Q1 2015 by 4.94 per cent.
“Nominal GDP growth of manufacturing in Q1 2016 slowed by 2.98 per cent (year-on-year), 4.23 per cent points lower from growth recorded in Q1 2015 and 9.91 per cent points lower from growth in Q4 2015 as a result of slower growth.”
A country is said to be in economic recession after experiencing negative growth for two consecutive quarters.