Nigeria records 0.11% GDP growth in Q4 2020- NBS
The recent report by the National Bureau of Statistics (NBS) showed that Nigeria’s Gross Domestic Product (GDP) recorded an overall growth rate of -1.92 percent in 2020 when compared to 2.27 percent recorded in 2019.
Recall that, in the third quarter of 2020 Nigeria’s economy entered recession when the real GDP at basic prices grew by -3.62 percent on a year on year basis, marking a second consecutive quarter of negative real GDP growth after -6.10 recorded in the second quarter (Q2).
According to the bureau, the negative quarterly growth rates recorded in Q2 and Q3 2020 resulted in annual growth rate of -1.92 percent for 2020, compared to 2.27 percent recorded in 2019.
In the fourth quarter of 2020 however, growth turned positive, recording 0.11 percent in Q4 year on year. Compared to the third and fourth quarters of 2019, the growth performance in 2020 was slower by -5.90 percent points and -2.44 percent points respectively.
The NBS also disclosed that exports and imports of goods and services fell by 27 percent and 23 percent respectively during the period. Due to declining rates of growth in exports and imports, a negative balance of trade (-30%) was also recorded during the period.
“Nevertheless, the negative quarterly growth rates recorded in Q2 and Q3 2020 resulted in the annual growth rate of -1.92 percent for 2020, compared to 2.27 percent recorded in 2019.”
On exports, the bureau said: “In Q4’20, real exports grew by -42 percent and -58 percent, year on year, resulting in an annual growth rate of -27 percent, or 42 percent points lower than 15 percent recorded in 2019.
“Quarter on quarter, QoQ, however, growth in real exports remained negative from Q1’20 to Q4’20.” Similarly, on exports it, stated: “Imports of goods and services also declined in real terms, recording -23 percent in Q3 and -40 percent in Q4. “On an annual basis, however, the real growth of imports was worse than 2019, at -23 percent in 2020 compared to 27 percent in the previous year. “On a QoQ basis, imports grew by 16 percent in Q3 but declined -4 percent in Q4’20.”
“Due to declining rates of growth in exports and imports in 2020, the growth in net balance of trade (or net exports) was negative in Q3 and Q4 2020. “On a YoY basis, the net trade balance recorded -52 percent growth rate in real terms in Q3 and -73 percent growth rate in Q4. “This resulted in an annual growth rate of -30 percent in real terms.”