The National Bureau of Statistics (NBS), has said that Nigeria’s Gross Domestic Product (GDP) increased by 4.03 per cent in the third quarter of 2021.
According to the NBS, in the third quarter of 2021, Nigeria’s real GDP at basic prices rose by 4.03 per cent on a year-on-year basis showing a steady improvement from the economic downturn in 2020. The NBS said that growth improved further in the fourth quarter of 2021 with a positive GDP growth rate of 3.98 per cent.
The report said: “In the third quarter of 2021, Nigeria 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. Growth however, improved further in fourth quarter 2021 with positive GDP growth rate of 3.98%. 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. 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, 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. 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.
“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%). Compensation of Employees, during the third and fourth quarters of 2021 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.
“The observed trend in 2020 indicates that real household consumption expenditure declined in Q1 and Q2 accounting for negative growth rates informed by the COVID 19 pandemic. However, positive growth rates were recorded in Q3 and Q4 of 2020 as well as the four quarters of 2021.’’ Household consumption expenditure consists of expenditure, including imputed expenditure, incurred by resident households on individual consumption goods and services. It said that Government Consumption Expenditure recorded growth rates of -39.51 per cent and -16.76 per cent in Q3 and Q4 of 2021 respectively, year-on-year.”
The agency said the annual growth rate according to the report stood at -34.03 per cent in 2021, compared to 61.58 per cent in 2020. It said, Net Exports recorded positive growth rates in the first two quarters of 2020 and shifted to negative growth rates in the third and fourth quarters of 2020.