Nigeria’s Q2 GDP: What’s the outlook for Q3?
Key questions:
- The Nigerian economy shrunk by 2.5% in Q2 2023, higher than 2.3% in Q1 2023. What sectors were responsible for this growth?
- What factors will largely determine the outlook of the Nigerian economy in the coming quarters, and what will the outlook be?
In its recently released GDP report, the National Bureau of Statistics (NBS) estimates that the Nigerian economy grew by 2.51% in Q2 2023, a slight increase from the 2.31% in Q1 2023 but down from the 3.54% growth recorded in Q2 2022.
This growth was driven mainly by the non-oil sectors, with the top-contributing sectors being agriculture (23%), trade (16.8%), and telecommunications (16.06%), which grew by 1.5%, 2.4% and 9.7%, respectively.
However, this positive growth was dampened by negative growth in other sectors like crude petroleum (5% of total GDP) and road transport (0.74%), which contracted by 13% and 55%, respectively.
As shown above, other notable sectors were the manufacturing, financial services and insurance, and rail transport sectors, which grew by 2%, 26.8%, and 16.8%, respectively. This article, therefore, highlights key findings from the GDP report and the outlook for the economy in the coming quarters.
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