Nigeria: Falling oil prices hit growth in Q2
August 26, 2015
The economy decelerated sharply in Q2, with GDP at basic prices expanding 2.4% over the same period last year, down from the 4.0% increase tallied in Q1. The result represented the weakest expansion since the current series began in 2010.
According to the National Bureau of Statistics (NBS), Q2’s deceleration mainly reflected a contraction in the industrial sector, which fell 3.3% annually (Q1: -2.5% year-on-year). Depressed global oil prices and subdued crude production continue to put a dent in the all-important oil industry. Weak growth, however, was seen across the board in Q2, with agriculture slowing to a 3.5% increase (Q1: +4.7% yoy) and services moderating to a 4.7% rise (Q1: +7.0% yoy).
At market prices, GDP in Q2 slowed to a 2.3% increase, which was down from the 3.9% growth tallied in Q1. The NBS will release a more complete set of data, including GDP by expenditure, on 15 September.