By Audrey Lotechukwu
TUE, 01 DEC, 2020-theGBJournal- National Disposable Income in Q1 and Q2 2020 managed a growth of 2.55% and 0.66% respectively, in real terms, year on year, compared to 2.64% and 1.4% for the corresponding periods in 2019, according to latest data by the National Bureau of Statistics. The data indicates the rising difficulties among households as the national economy flounders.
During the same period, Household Consumption Expenditure grew by -4.03% and -0.08% respectively, in real terms, year on year, compared to -2.68% and 0.75% for the corresponding, reflecting also a significant growth in liabilities incurred during the periods in 2019.
According to the NBS, for the first half of 2020, real household final consumption expenditure contracted by -1.99%, compared to -0.94% in 2019.
The NBS acknowledges that the observed trend in 2020 indicates that real household consumption expenditure remains weak, maintaining its contractionary trend from 2019.
On a quarter on quarter basis, real household consumption expenditure grew by 10.7% in Q2 2020 but this was recorded against a significant drop in the preceding quarter (Q1 2020), which had recorded a contraction of 23.36%. And in nominal terms, household final consumption expenditure grew by 8.62% in Q1 2020 but contracted -15.96% in Q2 2020, year on year, bringing nominal growth rate for the first half of 2020 to -4.20% compared to 11.22% for the first half of 2019.
On a quarter on quarter basis, growth was recorded at –16.25% in Q1 and –15.64% in Q2 2020 compared to –15.14% and 9.03% in Q1 and Q2 2019.
Overall, Household consumption accounted for 63.11%, of real GDP at market prices in Q2 2020, an increase of 3.7 percentage points when compared to Q2 2019.
In contrast, General Government Consumption expenditure more than doubled its share in Q2 to 15%, compared to 6% in Q1 2020.
General Government Consumption consists of expenditure, including imputed expenditure, incurred by government at all levels on both individual and collective consumption goods and services.
In Q1 and Q2 2020, real general government expenditure grew by 6.80% and 152.05% respectively, with half year growth rate recorded at 77.25%. On quarter on quarter basis, general government expenditure declined –16.26% in Q1 2020 but grew significantly by 122.22% in Q2 2020.
In nominal terms, government expenditure grew by 9.61% in Q1 and 157.01% in Q2 2020. General government expenditure accounted for 6.23% of gross domestic product in real terms in the first quarter and 14.58% in the second quarter of 2020.
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