NIGERIA’ economic growth, measured by the performance of the Gross Domestic Product (GDP) has been forecasted to hit 7.2 percent, while inflation will drop to 8.3 percent in 2014.
UK based Business Monitor International, in its review of global macro economic indicators, made available to Vanguard, rated Nigeria as one of the top economies in sub-Saharan Africa with rising GDP growth.
Nigeria’s GDP, it noted, picked from 6.6 percent to 6.8 percent this year, and might inch up to 7.2 percent in 2014,” said the report.
The report said the country’s inflation which is currently peaking at 10.5 percent down from 12.2 percent last year, would further fall to 8.3 percent next year.
Earlier, the National Bureau of Statistics (NBS), has said that GDP growth was estimated at 6.6 percent by end December 2012 compared with 7.43 percent recorded in the corresponding period of 2011. Growth projection for 2013 is 6.75 percent.
Reacting to this development, the Lagos Chamber of Commerce and Industry, LCCI, said:” The overall growth figures showed a positive trend. We are pleased with the numbers; but we are concerned about the weak impact of the growth performance on private sector and the welfare of the Nigerian people.
Muda Yusuf, its director general, noted that the key drivers of growth were telecommunications sector, solid minerals, real estate and distributive trade.
“Sectors that posted good growth performances as at last year were telecommunications, 31.8 percent; hotel
and restaurants, 12.2 percent; solid minerals, 12.5 percent; building and construction, 12.6 percent; real estate 12.4 percent and wholesale and retail trade, 9.6 percent. However, the contributions of most of the sectors to GDP are not significant. Respective contributions are as follows: telecommunications, seven percent; solid minerals, 0.4 percent; hotel and tourism, 0.6 percent; building and construction, 2.2 percent; real estate, 1.9 percent.
”It is worrisome that the oil and gas sector posted negative growth over the last one year. The agricultural sector similarly recorded declining growth performance over the last six quarters. These two sectors together account for 51 percent of the nation’s GDP.
“The challenges of security and oil theft in the Niger Delta coupled with the policy uncertainty may have contributed to the output contraction in the oil and gas sector. The agricultural sector suffered declines possibly as a result of the security situation, especially in the northern part of the country; this was aggravated by the incidence of flood experienced in the country last year.”
-Vanguardngr
Recent Comments