Despite the sluggish performance of major economies in Europe, Asia and Americas due to a debt crisis and other fiscal problems in the past months, Nigeria’s economy, when measured by Real Gross Domestic Product (GDP) grew by 6.28 per cent on an aggregate basis in the second quarter of 2012.
The growth rate, however, is slower than the 7.61 per cent in the corresponding quarter of 2011.

The latest reports by the National Bureau of Statistics, NBS, on the overall performance of the economy in the quarter under review, indicated that the nominal GDP for the threemonth period ended June this year, which was estimated at N9.84trn, was still higher than the N9.17trn recorded during the corresponding period of last year.
A breakdown of the contributions to the healthy growth rate showed clearly that the non-oil sector was growing faster with activities in the building and construction sector spurring the growth while the oil sector’s contributions shrank, as overall output from crude oil production dipped during the review period compared to what was the output in Q2, 2011.
According to the NBS, the oil sector with a total 2.38 million barrels per day of oil production, with associated gas components, recorded a real term growth rate of -0.73 per cent as against the 2.45 million barrels per day, in the corresponding period of last year.

Overall, however, the non-oil sector experienced a slower growth rate in Q2, 2012 with a growth rate of 7.50 per cent in real terms compared with 8.85 per cent in the corresponding period of last year. The NBS attributed the slower growth rate to a decline in activities in the wholesale and retail trade, telecommunications and agricultural sectors.

The bureau added that the agricultural sector, which is the largest contributor to the GDP growth also showed significant decline in performance as in terms of output, as real agricultural GDP growth in Q2, 2012 dropped to 3.97 per cent as against 5.95 per cent in the Q2, 2011.

It linked the decline in the sector’s output largely to persisting constraints including, hindered movement of farm inputs and produce in major agricultural producing states especially in the Northern part of the country as well as high rainfall during the quarter, which resulted in flooding and invariably, output levels in some parts of the country.

An appraisal of the performance of other sectors in terms of their contributions to the real GDP indicated that the manufacturing sector fared well with an increase in growth rate from 7.34 per cent in the second quarter of 2011 to 7.45 per cent in the review period in 2012.

The telecommunication sector recorded a real GDP growth of 29.77 per cent in the review period compared to 33.70 per cent recorded in Q1, 2011.

The wholesale and retail trade sector grew by 8.61 per cent in Q1, 2012, representing a decline of 2.86 per cent over the 11.47 per cent recorded in the corresponding quarter of last year compared with the real sector growth rate, which stood at 10.87 per cent in Q2, 2012 compared with 10.48 per cent in corresponding period of last year.

Meanwhile, the composite Consumer Price Index which measures inflation rose to 11.7 percent year-onyear in August compared with the 12.8 per cent.

The statistical agency attributed the moderation in the index partly to relative slower rises in both the ‘Food’ and “Core” indices as a result of aggressive monetary policy initiatives by the CBN, base effects and a much lower rise in several food prices such as yam tubers and vegetables due to the prevailing harvest season.

Although the report indicated that despite the fact that most classes under the food index increased during the month, the implications of the increase on the CPI was moderated due to the fact that the Food index exhibited a sharp increase in August 2011. Overall, the NBS report reflected that on a monthly basis, the CPI was higher by 0.67 per cent when compared with the preceding month.

On the urban and rural indices, the report stated that in the month under review the urban inflation rate stood at 14.4 per cent year-on-year compared with Rural index, which indicated a 9.7 per cent yearon- year increase. It added that the ‘Urban All Items’ index increased by 0.69 per cent month-on-month, while the corresponding Rural index increased by 0.66 percent, when compared with July’s trend.

“The percentage change in the average composite CPI for the 12-month period ending in August 2012 over the average of the CPI for the previous 12-month period was 11.8 per cent. The corresponding 12-month year-on-year average percentage change for urban and rural indices was 12.4 and 11.4 respectively

“The composite Food Index increased year-onyear by 9.9 per cent to 135.9 points in August 2012, down from 12.1 per cent in July 2012. On a year-on-year basis, the relative moderation of food prices over the month of August could be attributable to a significant base effect. During the same period last year, the food index increased sharply by 2.7 per cent partially as a result of higher fish, and tuber prices, as well as fruits due to the fasting period.

“As this was rather uncommon, the year-on-year percentage change in August 2012 reflects a lower year-on-year estimated due to the sharp increase in August 2011. The Food Index was also higher than levels recorded in July of this year by 0.7 per cent. The rise in the Food Index was largely across all major classes led by higher prices in fish, oils and fats, and meats. The increase in the Food sub-index were also partially driven by increase in imported foods price,” NBS added.

It reported further that the “All items less Farm Produce” index rose by 14.7 per cent year-on-year in August 2012, compared to 15.0 per cent in July, adding that on month-on-month basis, the core index increased by 0.6 per cent during the same period.

http://nationalmirroronline.net/news/51561.html

Where?
Is this only in ASO ROCK AND OTUEKE?

Pretty slow growth rate for a developing economy, no?

Lies

More than 1 million people have lost their job in Lagos alone this year.

From Banking Industry to Petroleum Industry and other Industries control by the federal.

Has subsidy produced any growth?