NIGERIA’s Gross Domestic Product (GDP) has dropped to 1.87 percent in the first quarter of 2020, the latest GDP report by the National Bureau of Statistics (NBS) reveals.
According to the report, the drop in the GDP figure is as a result of the significant global disruptions resulting from the Coronavirus disease (COVID-19) public health crisis, a sharp fall in oil prices, and restricted international trade.
This has led the GDP to a drop by 0.23 percent when compared to the GDP of quarter one in 2019 (2.10 percent) and a contraction of about 0.68 percent when compared to the last quarter of 2019 (2.27 percent).
“The performance recorded in Q1 2020 represents a drop of –0.23 per cent points compared to Q1 2019 and –0.68 per cent points compared to Q4 2019,” stated in the report.
The COVID-19 pandemic is ravaging the world and its economies, leading many into recession.
Nigeria as Africa’s largest economy may be facing a recession that could last until 2021, which may be her worst in 30 years.
The minister of finance, Zainab Ahmed had said last week that Nigeria’s economy would soon go into a recession.
Ahmed also disclosed that the economic growth in Nigeria could contract by as much as -8.94 per cent in 2020 in the worst-case scenario and could be a contraction of -4.4 per cent in the best-case scenario if there was no stimulus and 0.59 per cent contraction if there was a fiscal stimulus package.
By International Monetary Fund (IMF)’s estimation, Nigeria’s economy is expected to shrink by 3.4 percent this year.