As Nigeria exits recession, MAN says prices will only drop if…

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Nigeria and South Africa have both exited recession, notching up economic growth of 0.6 percent and 2.5 percent respectively in the second quarter, official data showed on Tuesday.

Higher economic activity across most industries, in particular agriculture, finance and mining, lifted the gross domestic product (GDP) by 2.5 percent quarter-on-quarter (seasonally adjusted and annualized), Statistics South Africa (Stats SA) said. "Quarter on quarter, real GDP growth was 3.23%", the report said.

Oil GDP recovered significantly from -11.63 per cent in Q2 2016 to 1.64 per cent in Q2 2017, while Non-oil GDP grew marginally at 0.45 per cent.

Growth rate recorded was 1.46% higher at 0.55% compared to the revised figure of -0.91% in Q1'17.

Since South Africa emerged from the 2009 recession, growth has fallen short of the government's target of 5 percent, the level economists say is needed to curb unemployment.

This indicates the emergence of the economy from recession.

According to Statistician general Pali Lehohla the agricultural sector was the biggest contributor to the GDP with a contribution of 0.7 of a percentage point to overall GDP growth.

A statement issued in Abuja by the Senate Spokesperson, Senator Sabi Abdullahi, said it was commendable that the economy grew by 0.55 per cent in the second quarter of 2017 after five consecutive quarters of contraction. This means that South Africa has broken out of a technical recession.

Africa's largest economy shrank by 1.5 percent in 2016 for its first annual contraction in 25 years.

The party said this in reaction to the news that Nigeria had exited recession. "We therefore continue to argue that economic growth can not be achieved at the cost of the workers".

"MAN believes that, with appropriate mix of policies and concerted efforts of all stakeholders, the growth rate would eventually become inclusive and impact the lives of over 180 million Nigerians". Oil prices reached the year to date peak of $56pb in April before declining to $47pb at the end of the second quarter.

Joe De Beer, the Deputy Director-General responsible for Economic Statistics, said the 33.6% growth was most likely driven by the record maize crop for this year.

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