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Nigeria’s GDP drops by 2.24% in 3rd quarter as Inflation hits 18.3 %

gdp2For the third quarter 2016, Nigeria’s Gross Domestic Product (GDP) dropped by 2.24 per cent.  Data released on Monday by the National Bureau of Statistics (NBS) revealed that Nigeria’s economy shrunk by 2.06 per cent due to revenue shortage, foreign exchange shortage and volatile naria-dollar parity.

According to the report, oil sector dropped by 22.01% in the third quarter ended September, while non-oil sector grew 0.03 per cent.

Also, Oil sector contribution to GDP was seen at 8.19 per cent and non-oil sector contribution to GDP was higher at 91.81 per cent.

Meanwhile, the National Bureau of Statistics (NBS) in a report released on Monday in Abuja said  Consumer Price Index (CPI) increased to 18.3 per cent (year-on-year) in October from 17.9 per cent recorded in September.

The CPI, which measures inflation, is 0.48 per cent points higher from the points recorded in September this year.

NBS said: “Communication and Restaurants and Hotels recorded the slowest pace of growth in October, growing at 5.7 per cent and 9.4 per cent year-on-year respectively.

“The Food Index rose by 17.1 per cent (year-on-year) in October, up by 0.47 per cent points from 16.6 per cent recorded in September.

“During the month, all major food groups, which contribute to the Food sub-index, increased, with fruits recording the slowest pace of increase at 11.5 per cent,’’ it said.

Also, the Core Sub Index, which rose by 18.1 per cent in the month, is 0.4 per cent points higher from rates recorded in September, which was 17.7 per cent.

NBS said: “During the month, the highest increases were seen in housing, water, electricity, gas and other fuels as well as fuels and lubricants for personal transport equipment and education.

“Significant price movement under the Core Sub-index was also recorded for clothing and footwear, which recorded an increase of 17.8 per cent year-on-year.

“The groups with least growth pace recorded in October were communication (5.7 per cent), restaurants and hotels (9.4 per cent) and recreation and culture (10.3 per cent).’’

 

SOURCE: CITY BUSINESS NEWS

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