Economy Begins Slow Recovery From Recession
The nation’s economy has begun a slow recovery from recession although the Gross Domestic Product (GDP) contracted again by 0.52 per cent in real terms in the first quarter of 2017.
The National Bureau of Statistics (NBS) disclosed Tuesday that this contraction, which represented the fifth in the quarterly series, starting from the first quarter of 2016, raised hopes that recovery is on the way.
The nation’s inflation, which has moderated for the third consecutive time, has appeared discriminatory, as some items in the food index, which are patronised by the masses, have remained on the high side.
The GDP at -0.52 per cent, is 0.15 per cent higher than the rate recorded in the comparable period of 2016 at -0.67 per cent and higher by 1.21 per cent points from rate recorded in the preceding quarter at -1.73 per cent.
The economy recorded a yearly growth drop of 1.5 per cent last year, as oil price crisis plunged the country’s revenue to a record low and affected the general spending and consumption with the attendant shortage of foreign exchange.
Already, there are renewed hopes for better times soon, as analysts say there are signs of resurgence and growth in the troubled oil sector. Average oil production inched up from the fourth quarter of 2016 by 0.07 million barrels per day (bpd) to 1.83 million barrels in the first quarter, NBS said.
According to economist Bismarck Rewane, the growth numbers are positive in the sense that the level of contraction has drastically reduced and most economic activities are improving.
However, he warned that “we are not there yet”, as what is happening is that the economy is moving in the right direction, but for now this “will be a slow and painful recovery.”
He also commended the Central Bank of Nigeria (CBN)’s decision on rates, adding: “When in doubt, do nothing or wait and see or tell the truth. The best thing is to play safe, just as they did.“I remain cautiously optimistic, but in terms of direction, they are in control. I’m beginning to see signs that things are getting better.”
