World Markets

Nigeria says Q3 and Q4 GDP to reflect further economic slowdown -presidency

Credit: REUTERS/TEMILADE ADELAJA

Nigeria expects the third and fourth quarters to reflect the continued effects of a slowdown, after the economy contracted by 6.1% in the second quarter, the presidency said on Wednesday.

Adds quote, details

ABUJA, Aug 26 (Reuters) - Nigeria expects the third and fourth quarters to reflect the continued effects of a slowdown, after the economy contracted by 6.1% in the second quarter, the presidency said on Wednesday.

Nigeria, Africa's largest economy and top oil producer, faces its worst crisis in four decades due to low crude prices, and the impact of the novel coronavirus pandemic, which hurt demand for its main export commodity.

"It is anticipated that while the third and fourth quarters will reflect continued effects of the slowdown, the fiscal and monetary policy initiatives being deployed by government in a phased process will be a robust response to the challenges posed by the COVID-19 pandemic," said a statement issued by the presidency.

Policymakers face a raft of challenges. Inflation rose to 12.82% in July, its highest level in more than two years, and the unemployment rate stood at 27.1% in the second quarter.

Nigeria's economy was already grappling with sluggish growth before the pandemic following a 2016 recession. The International Monetary Fund has said it sees Nigeria's GDP falling 5.4% this year, while the government has said the economy may shrink by as much as 8.9%.

(Reporting by Felix Onuah; Writing by Chijioke Ohuocha; Editing Alexis Akwagyiram and Alex Richardson)

((alexis.akwagyiram@thomsonreuters.com; +234 8188 779 319; Reuters Messaging: alexis.akwagyiram.thomsonreuters.com@reuters.net / Twitter: @alexisak))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest World Markets Videos

First Look With Surveillance: China Data, Ukraine Aid

May 20, 2022

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More