The National Bureau Statistics (NBS) said that the Nigerian economy has contracted despite that the country is moving out of the economy recession.
The NBS confirmed this on Tuesday, May 23, as it released the gross domestic product (GDP) report for the first quarter of 2017, which showed that the economy contracted by 0.52 percent year-on-year.
It was learnt that in August 2016, NBS called Nigeria’s first recession since the return of democracy in 1999, stating that the economy shrank by 2.06 percent in the second quarter of 2016 to hit its lowest point in nearly three decades.
With the economy having a negative growth rate of -0.52 per cent, the economy is still in recession.
The rate of growth for the first quarter of 2017 is, however, an improvement over the revised -1.73 per cent GDP growth rate figure recording as of December 2016.
This is the fifth consecutive contraction in GDP growth rate that the economy would be recording since the first quarter of 2016.
The NBS report reads in part, “In the first quarter of 2017, the nation’s GDP contracted by -052 per cent (year on year) in real terms, representing the fifth consecutive quarter of contraction since Q1 2016.
“This is higher than the rate recorded in the corresponding quarter of 2016 and higher by 1.21 percentage points from rate recorded in the preceding quarter.”
However, the rate of growth is against expectations by the Federal Government that the country would be out of recession in weeks.