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Economic experts speak on factors responsible for growth in GDP by 4.03%

The economists explained that the economy’s growth was hit by high unemployment, inflation and insecurity plaguing households and businesses.

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The Nigerian Economy

Economic experts have spoken about Nigeria’s economic growth as it grew more slowly in the third quarter of the year than it did in the second quarter.

The economists explained that the economy’s growth was hit by high unemployment, inflation and insecurity plaguing households and businesses.

Techeconomy.ng had previously reported that data released by the National Bureau of Statistics (NBS) on Thursday showed that national output expanded by 4.03 per cent in the three months to September, compared to a growth of 5.01 per cent in the three months to June.

The NBS, in its latest GDP report released by Simon Harry, the Statistician-General of the Federation, in Abuja, said the 4.03 per cent GDP growth showed sustained positive growth over the last four quarters since the recession witnessed in 2020.

Harry said during the quarter, aggregate nominal GDP stood at N45.11tn, an increase of 15.41 per cent over the performance in the corresponding period of 2020.

He explained that the base effect of the negative economic growth recorded in Q2 and Q3 2020 as a result of the pandemic contributed to the growth in GDP in 2021.

According to him, the current growth trend could be sustained with strict adherence to safety measures put in place to control the spread of the COVID-19 pandemic and other variants of the disease.

Harry said the country recorded an average daily oil production of 1.57 million barrels per day in Q3 2021, up from 1.67 million bpd in the same period a year earlier and 1.61 million bpd in Q2 2021.

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Economists and financial experts, however, highlighted the major factors responsible for the slowdown in the nation’s GDP growth and what the government should do to stimulate the economy.

Prof. Akpan Ekpo, Chairman of the Foundation for Economic Research and Training, attributed the drop in GDP growth to structural problems in the economy.

Akpan noted that despite the positive growth rate, the economy had not improved as the country continued to experience stagflation.

“The economy is not improving because growth is not development.  We are still in a place called stagflation, where there is high unemployment rate, double-digit inflation rate, high lending rate and high misery index.”

On his part, Johnson Chukwu, Managing Director of Cowry Asset Management Limited, said: “If you consider that in the last quarter of last year, GDP was positive by 0.11 per cent, it means that we should expect a growth in the first quarter but the growth will be slower than what we saw in Q3.

Also speaking, Prof. Chris Onalo, CEO, Institute of Credit Administration, said there was a need to tackle insecurity and improve the power supply in the country for activities to pick up better.

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