Nigeria's recovery from recession is weak, feeble - PDP

Mixed reactions trail “out of recession” verdict by NBS

Adeyey said the recovery of Nigerian economy is weak and feeble.

"This growth is 2.04% higher than the rate recorded in the corresponding quarter of 2016 (-1.49%) and higher by 1.46% points from rate recorded in the preceding quarter, (revised to -0.91% from -0.52%)".

Statistics South Africa said the country was on track for record-breaking maize crops if production continued at estimated levels, according to figures from the Crop Estimates Committee.

The 2.5-percent rise in GDP brings to an end to South Africa's second recession since 1994.

"Neither is driven by strong productivity gains", Razia Khan, the head of macroeconomic research at Standard Chartered Bank in London, said in an emailed response to questions. If this positive growth is supported by favorable August inflation data, the doves in the committee will be more emboldened to push for more accommodative monetary policy stance.

Foreign portfolio investment - on which South Africa relies to fund the current account deficit - recorded inflows of R10.1 billion in the first quarter after heavy outflows of R57.3 billion in the fourth quarter. Two ratings companies cut its global debt to junk in April after President Jacob Zuma fired Pravin Gordhan as finance minister, with the changes battering business and consumer confidence.

The report had shown a growth of the economy for the first time in six consecutive quarters.

Expenditure on GDP was at 2.4% quarter-on-quarter and 0.8% year-on-year. The jobless rate is at a 14-year high, at 27.7%.

The bureau on September 5 announced that Nigeria was out of economic recession.

The latest GDP figures are an improvement of the contraction of 0.6% (adjusted) for the first quarter and the 0.3% contraction reported in the last quarter of 2016.

Gross domestic product rose 1.1 percent on an unadjusted year-on-year basis in the second quarter, compared with a 1.0 percent expansion in the previous three months, the statistics agency said.

The import of the release is that Nigeria has come out of its longest recession in nearly three decades.

"The growth rate is not what planners and those in decision-making positions would have wanted".

While these numbers are encouraging, it is still too early to celebrate.

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