Insight Details
Non-oil sector resurgence on the back of services sector’s recovery
Nigeria’s real gross domestic product (GDP) improved by 1.50% year-on-year in 2Q’18.
In the second quarter to June 2018, Nigerian economy recorded real GDP growth rate of 1.50% lower than 1.95% in the first quarter of 2018 but higher than 0.72% recorded in the corresponding quarter of the previous year. In addition, in the review quarter aggregate nominal GDP stood at N30.69 trillion, up by 7.84% and 13.54% compared with N28.46 trillion and N27.03 trillion respectively in the first quarter of the year and the second quarter of 2017.
In our opinion, the real GDP growth rate recorded in the review quarter is less than the expectation and it poses a concern on the strength of the economic recovery. Overall, out of the forty-six economic activities in the nation’s GDP basket, thirty-one recorded growth in real GDP while fifteen recorded various levels of decline. This is a slightly weak performance compared with thirty-six economic activities that recorded growth and ten with various degree of decline in the first quarter of 2018.