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Africa’s two biggest economies officially out of recession, Nigeria grows +0.55% and South Africa grows +2.5%
This is one of the best news leaders of these two nations would like to share.
In the Q2 2017 GDP report released by the National Bureau of Statistics (NBS)on Tuesday, September 5, 2017, stated that Nigeria’s Gross Domestic Product (GDP) grew by 0.55% (year-on-year) in real terms.
This indicates the emergence of the economy from recession after five consecutive quarters of contraction since Q1 2016. The economy's real GDP growth was 3.23% quarter on quarter.
The factors noted for this economic performance include improvement in oil production due to relative peace in Niger Delta. Also, the sector growth experienced in the agriculture (Crop Production), manufacturing, finance & insurance and services sectors.
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ALSO READ: Nigeria gets Q2 GDP report on September 5, as experts express mixed opinion on end of recession
Nigeria's non-oil sector also grew by 0.45% in real terms during the period.
For South Africa, the recovery of agriculture, finance and mining sectors were noted for pulling the rainbow nation out of the recession. The nation’s agricultural sector increased production by 33%, thus lifting the GDP by 2.5%.
Higher activity in the financial intermediation and auxiliary investments and financing activities led to the financial sector's GDP growing by 2.5%. The increased mining activities also led to 3.9% GDP growth of the mining sector.
A Bloomberg report had earlier suggested that both countries may be on their way out of recession.
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The report which quoted John Ashbourne, an economist at London-based Capital Economics Ltd., saying: “In both cases, a lot of the ‘recovery’ is due to things bouncing back from very poor performances in the reference quarter. But that’s not all. In both cases, there is some real growth.”
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