Nigeria’s economy has contracted for the second consecutive quarter, and hence entered into recession, as economic activities contracted by 3.62 percent in the third quarter of the year (Q3’2020).
Economic recession is defined as two consecutive quarters of negative Gross Domestic Product (GDP) growth. A negative GDP growth is also referred to as a contraction.
Confirming that the nation’s economy is in recession, the National Bureau of Statistics, NBS, in its DGP report for Q3’2020 said that the nation recorded GDP growth of -3.62% in Q3’2020, though an improvement from the -6.10% growth recorded in Q2’2020.
The NBS stated: “Nigeria’s gross domestic product (GDP) recorded a growth rate of –3.62% (year-on-year) in real terms in the third quarter of 2020.
“Cumulatively, the economy has contracted by -2.48%. While this represents an improvement of 2.48% points over the –6.10% growth rate recorded in the preceding quarter (Q2 2020), it also indicates that two consecutive quarters of negative growth have been recorded in 2020.”
The NBS further stated: “Furthermore, growth in Q3 2020 was slower by 5.90% points when compared to the third quarter of 2019 which recorded a real growth rate of 2.28% year on year.
“The performance of the economy in Q3 2020 reflected residual effects of the restrictions to movement and economic activity implemented across the country in early Q2 in response to the COVID-19 pandemic.
“As these restrictions were lifted, businesses re-opened and international travel and trading activities resumed, some economic activities have returned to positive growth. A total of 18 economic activities recorded positive growth in Q3 2020, compared to 13 activities in Q2 2020.”