Tag nigeria officially in recession as gdp growth drops to 2 06

Nigeria Officially Enters Recession as GDP Growth Drops to 2.06%

The National Bureau of Statistics (NBS) has announced that Nigeria's Gross Domestic Product (GDP) growth rate has dropped to 2.06% in the second quarter of 2020, officially entering a recession.

According to the NBS, the country's GDP growth rate has been declining since the fourth quarter of 2019, with the second quarter of 2020 recording the lowest growth rate in over a decade.

The recession is attributed to a combination of factors, including the COVID-19 pandemic, which has disrupted global trade and supply chains, as well as the country's reliance on oil exports, which have been affected by the pandemic and a global glut in oil supply.

The NBS also reported that the country's economy contracted by 6.1% in the second quarter of 2020, compared to the same period in 2019.

The recession is expected to have a significant impact on the country's economy, with many experts predicting a decline in economic activity, a rise in unemployment, and a decrease in government revenue.

The Nigerian government has announced a series of measures to mitigate the impact of the recession, including a stimulus package aimed at supporting small and medium-sized enterprises (SMEs) and a plan to increase the country's non-oil revenue.

However, many experts believe that more needs to be done to address the root causes of the recession and to stimulate economic growth.

Key Statistics:

• GDP growth rate: 2.06% (Q2 2020)
• GDP contraction: 6.1% (Q2 2020 compared to Q2 2019)
• Oil production: 1.43 million barrels per day (Q2 2020)
• Non-oil sector growth: 2.7% (Q2 2020)
• Inflation rate: 12.4% (July 2020)

Reactions:

• "The recession is a wake-up call for the government to take bold steps to diversify the economy and reduce its reliance on oil exports." - Dr. Ayo Teriba, Economist
• "The stimulus package announced by the government is a good start, but more needs to be done to support SMEs and stimulate economic growth." - Mr. Olumide Akpata, President, Nigerian Association of Small and Medium Enterprises
• "The recession is a result of the government's failure to diversify the economy and invest in critical sectors such as agriculture and manufacturing." - Senator Shehu Sani, Former Senator, Kaduna Central

Next Steps:

• The Nigerian government is expected to announce a series of measures to mitigate the impact of the recession, including a stimulus package and a plan to increase non-oil revenue.
• The Central Bank of Nigeria (CBN) is expected to cut interest rates to stimulate economic growth and reduce the cost of borrowing.
• The government is expected to increase its spending on critical sectors such as agriculture and manufacturing to stimulate economic growth.
• The private sector is expected to play a key role in stimulating economic growth, with a focus on diversification and innovation.