Nigeria: Economic growth in Q1 decelerates to over-two-year low
June 1, 2015
Nigeria’s GDP by expenditure decelerated to a 3.9% annual expansion in Q1 according to data released on 1 June. The print marked a sharp deceleration over the 6.4% increase tallied in Q4. The result represented the weakest expansion since Q4 2012 and mainly reflected a deterioration in private consumption and the external sector.
According to the National Bureau of Statistics (NBS), private consumption slowed to a 7.2% annual increase in Q1 (Q4: +10.6% year-on-year), while government spending soared to a 42.8% expansion (Q4: +16.6% yoy) as authorities sped up expenditures ahead of the March elections. Gross fixed investment growth slowed from 12.5% in Q4 to 9.7% in Q1.
On the external side of the economy, exports of goods and services plummeted 18.3% annually in Q1 (Q4: -14.5% yoy) mainly due to low oil prices. Import growth slowed to 6.0% (Q4: +12.0% yoy). As a result, the external sector’s net contribution to growth fell from minus 3.9 percentage points in Q4 to minus 5.1 percentage points in Q1.