GDP: Experts link Q3 growth to exchange rate stability, CBN interventions
Financial experts have attributed the 1.8 per cent growth recorded by the Gross Domestic Product (GDP) in the third quarter to the relative stability in the exchange rate and various interventions in the real sector.
The financial experts made the attributions while speaking with the press in Lagos on the Q3 2018 GDP report released by the National Bureau of Statistics (NBS).
Our correspondent reports that Q3 figures released by the NBS Statistics, shows the GDP grew by 1.81 per cent in the third quarter of 2018.
This represents a 0.31 per cent increase from the 1.50 per cent growth recorded in the second quarter of 2018.
On a year on year basis, GDP grew by 0.64 per cent from the 1.17 per cent recorded in the third quarter of 2017.
The Oil sector GDP continued to retract with a negative growth rate of 2.91 per cent and the non-oil sector grew by 2.32 per cent against 2.05 per cent in the second quarter of 2018.
Prof. Uche Uwaleke, Head of Banking and Finance Department, Nasarawa State University, Keffi, linked the growth to stability in the exchange rate and the Central Bank of Nigeria (CBN) interventions in the real sector.
Uwaleke added that the implementation of the 2018 budget which kicked-in at the beginning of the third quarter contributed to the economic growth.
“The Q3 2018 GDP report which showed the economy grew by 1.8 per cent compared with 1.5 per cent in Q2 is cheering news because it marked an end to the downward trend in GDP growth noticed since the first quarter of this year.
“Of note is the performance of the non-oil sector where marginal improvements were recorded in manufacturing, especially cement production, transportation and agriculture,” Uwaleke said.
He noted that the growth was still weak and fragile, particularly with respect to the sectors that have strong linkages to jobs.
According to him, the performance of the financial services sector which is critical to the economy is disappointing.
Contributing, Prof. Sheriffdeen Tella, a Professor of Economics at Olabisi Onabanjo University, Ago-Iwoye, Ogun, said that the GDP figure for non-oil exports was encouraging.
Tella said that the magnitude of loss from the oil sector was quite high and urged the NNPC to explore new oil customers.
“There is the need for the NNPC to explore new oil customers because part of the problem has to do with inability to sell crude oil.
“The composition of the output from the non-oil sector should be provided even in general release of information so that we can monitor if there is improved diversification of the economy,” he said.
Mr Ambrose Omordion, the Chief Operating Officer, InvestData Ltd. , said that growth recorded by the non-oil sectors could only be sustained with consistent economic policies.
He said that the Federal Government needed to ensure the implementation of its Economic Recovery and Growth Plan and review of the monetary policy to reduce cost of borrowing for economic expansion.
Omordion said that continued high interest rate was affecting the growth of small businesses in the country.
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