THUR, 12 MAY, 2022-theGBJournal | The National Bureau of Statistics (NBS) late Wednesday published Nigeria’s Gross Domestic Product (GDP) data for both Q3, Q4 2021, indicating improvement in the country’s economy over the period.
The data shows Nigeria’s real GDP at basic prices grew by 4.03% on a year-on-year basis showing a steady improvement from the economic downturn in 2020 in the third quarter of 2021, improving further in fourth quarter 2021 with positive GDP growth rate of 3.98%.
The NBS noted that the negative quarterly growths in Q2 and Q3 2020 resulted in a recession, which led to a negative annual growth rate of -1.92% for 2020, compared to 2.27% in 2019 on a year-on-year basis.
Meanwhile, the annual growth of 2021 stood at 3.40%, an improvement of 2020. Compared to the third and fourth quarters of 2020, the performance in 2021 indicated an increase of 7.65% points and 3.87% points higher, respectively.
Household Consumption Expenditure (consumer spending), in Q3 and Q4 2021 grew by 19.36% and 7.30% in real terms, year on year. For 2021, the annual growth rate in real household consumption expenditure stood at 25.65% compared to -1.69% in 2020.
Government Consumption Expenditure recorded growth rates of -39.51% and -16.76% in Q3 and Q4 2021 respectively, year on year, while annual growth rate stood at -34.03% in 2021 compared to 61.58% in 2020.
The NBS data also shows that National Disposable Income grew by -1.48% in the third quarter of 2021 and 2.84% in the fourth quarter 2021, but recorded growth of 0.32% and -1.28% in Q3 and Q4 of 2020 on a year-on-year basis in real terms, giving a slower growth rate of -2.52% for annual figure in 2021 compared to a positive growth rate in end 2020 (1.07%).
Amidst that, Compensation of Employees, during the period under review grew by 14.54%, and 11.79% respectively in real terms on year-on-year basis. For 2021, growth rate stood at 13.68% compared to 0.96% in 2020.
Net Exports recorded positive growth rates in the first two quarters of 2020 and shifted to negative growth rates in third and fourth quarters of 2020 as well as the first three quarters of 2021, a departure from the trend in 2019. Net exports grew in real terms in Q3 and Q4 2021 by -38.27% and 1.35% respectively. On an annual basis, net exports grew by -55.77% in 2021 compared to -13.17% recorded in 2020.
Household Consumption accounted for the largest share of real Gross Domestic Product at market prices, representing 70.85% and 71.35% in Q3 and Q4 2021 respectively, compared to 61.77% and 69.58% in the corresponding quarters of 2020. Net Exports, which represented 8.11% of total real GDP at market prices in Q3 2021, however declined slightly in Q4 to 7.86%.
The share of General Government Consumption expenditure represented 6.06% in Q3, but declined to 5.68% in Q4 2021. Gross Fixed Capital Formation accounted for 12.88% of real GDP in Q3, and rose slightly to 13.80% in Q4 2021. The share of Non-Profit Institutions Serving Households (NPISH) moved from more than 1% in Q3 2020 to less than 1% in first two quarters of 2021. NPISH had a share of 1.45% in Q3 2021 and 0.87% in Q4 2021.
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