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COVID-19 Update: Nigeria’s economy shrinks by 6.1% in Q2

by Olaitan Adeshola

Nigeria’s gross home product shrivelled by using six per cent in the 2nd quarter of 2020, a new record via the National Bureau of Statistics (NBS) has shown.

According to the record which used to be launched on Monday, Oil GDP reduced in size through -6.63 percentage from 5.06 percentage in the first quarter and 5.15 percentage in the 2nd of 2019.

Non-oil GDP was once additionally stated to have reduced in size with the aid of -6.05 percentage from 1.55 percentage in the first quarter of 2020 and 1.64 percentage in the 2d quarter of 2019.

This is the first time in three years that Nigeria’s financial system will file a terrible increase after its exit from the 2016 recession.

“The decline used to be mostly attributable to drastically lower tiers of each home and global financial undertaking at some point of the quarter, which resulted from nationwide shutdown efforts aimed at containing the COVID-19 pandemic,” the file read.

“The home efforts ranged from preliminary restrictions of human and vehicular motion applied in solely a few states to a nationwide curfew, bans on home and global travel, closure of colleges and markets etc., affecting each neighborhood and global trade.

“The efforts, led with the aid of each the federal and country governments, advanced over the direction of the quarter and continued throughout.”

Nigeria recorded its first COVID-19 case on February 27 and went into lockdown to gradual down the unfold of the coronavirus in March.

The us of a has begun to open up with the resumption of home flights, reopening of eating places and hotels.

International flights are additionally scheduled to resume on August 29.

Already, there are projections that Nigeria’s financial system will document its 2d recession in 4 years; one that is estimated to be its worst in 30 years.

A recession is a state of affairs the place there is bad GDP increase for the two consecutive quarters

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