The Gross Domestic Product (GDP) for the second quarter of the year has been released by the National Bureau of Statistics (NBS) today. As stated on the official site of the NBS “In the Second Quarter of 2016, the nation’s Gross Domestic Product (GDP) declined by -2.06% (year-on year) in real terms. This was lower than the growth rate of –0.36% (by 1.70% points) recorded in the preceding quarter, and also lower by 4.41% points from the growth rate of 2.35% recorded in the corresponding quarter of 2015.
Quarter on quarter, real GDP increased by 0.82% during the quarter, nominal GDP was N23, 483,954.78 million (in nominal terms) at basic prices. This was 2.73% higher than the Second Quarter 2015 value of N22, 859,153.01 million. This growth was lower than the rate recorded in the Second Quarter of 2015 by 2.44% points”.
This report confirms earlier predictions by economists and the federal government that Nigeria is heading for recession. Now the significant decline in activities across the economy sphere across the country will lead to decline in industrial production and manufacturing, rise in unemployment rates, less income for wholesale and retail trade and high cost of living.
How the federal government plans to tackle this ailing economy is yet to be revealed as the decline in economic activities in the country is on a steady rise.