By Olaolu Oladipo, Lagos
The Federal Government has projected a better outlook for the nation’s economy in the second half of 2016, saying the country would soon get out of it current state of recession.
A statement issued from the office of Vice President Yemi Osinbajo by his media aide, Mr. Laolu Akande on Wednesday stated that the just released GDP figures for the 2016 second quarter by the National Bureau of Statistics indeed confirmed a temporary decline but that it also indicated a hopeful expectation in the country’s economic trajectory.
“Besides the growth recorded in the agriculture and solid mineral sectors, the Nigerian economy in response to the policies of the Buhari presidency is also doing better than what the IMF had estimated with clear indications that the second half of the year would be even much better.” The statement reads in party.
It quoted the Special Adviser to the President on Economic Matters, Dr. Adeyemi Dipeolu as stating that “The Buhari presidency will continue to work diligently on the economy and engage with all stakeholders to ensure that beneficial policy initiatives are actively pursued and the dividends delivered to the Nigerian people.
“The just recently released data from the National Bureau of Statistics showed that Gross Domestic Product declined by -2.06% in the second quarter of 2016 on a year-on-year basis.
According to Dipeolu, “A close look at the data shows that this outcome was mostly due to a sharp contraction in the oil sector due to huge losses of crude oil production as a result of vandalisation and sabotage.
“However, the rest of the Q2 data is beginning to tell a different story. There was growth in the agricultural and solid minerals sectors which are the areas in which the Federal Government has placed particular priority.
“Agriculture grew by 4.53% in the second quarter of 2016 as compared with 3.09% in the first quarter. The metal ores sector showed similar performance with coal mining, quarrying and other minerals also showing positive growth of over 2.5%.
“Notably also, the share of investments in GDP increased to its highest levels since 2010, growing to about 17% of Gross Domestic Product.
“The manufacturing sector though not yet truly out of the woods is beginning to show signs of recovery while the service sector similarly bears watching.”
Nevertheless, the data already shows a reduction in imports and an increase in local produced goods and services and this process will be maintained although it will start off slowly in these initial stages before picking up later.
The inflation rate remains high but the good news is that the month-on-month rate of increase has fallen continuously over the past three months.