Nigeria And 40 Other Countries Slip Into Recession
The third-quarter gross domestic product (GDP) report released by the National Bureau of Statistics (NBS) on Saturday, show that out of 46 economic activities, 17 recorded positive growth, while 29 contracted.
This means that Nigeria, Africa’s largest economy, officially slumped into a recession — the worst in 33 years — following the second consecutive economic contraction for the year.
Nigeria shrank 3.6 percent in three months (July to September), having earlier recorded a 6.1 percent contraction between April and June.
An economy is officially declared to be in recession after two consecutive quarters of negative economic growth as measured by a country’s GDP.
The report shows that Nigeria’s average daily oil production in third quarter (Q3) stood at 1.67 million barrels per day (mbpd), from 1.81 mbpd in the previous three months — this is the lowest since the third quarter in 2016. Nigeria cut oil production to meet OPEC+ compliance.
Meanwhile real growth in the oil sector contracted at 13.89 percent in Q3 — indicating a sharp contraction of 20.38 percent points relative to the rate recorded in the corresponding quarter of 2019.
The oil sector contributed 8.73 percent to total real GDP in Q3, down from 9.77 percent and 8.93 percent, respectively, recorded in the corresponding period of 2019 and the preceding Q2 2020.
The non-oil sector grew by 2.51 percent in real terms during the quarter, which is -4.36 percent points lower than the rate recorded in Q3 2019, but 3.54 percent points higher than in the second quarter of 2020.
However Nigeria is not the only country to slip backwards economically it is also joined by.
1. United States
3. United Kingdom
7. South Africa
31. Czech Republic
35. South Korea
40. Hong Kong
Photo > Courtesy Forbes