Nigeria, Africa’s second largest economy,
has officially entered a state of economic recession for the first time
in over 20 years. This comes after current figures revealed that the
economy contracted for a second consecutive quarter. According to the
Nigeria Bureau of Statistics, the country’s Gross Domestic Product (GDP)
contracted by 2.06% in the second quarter. The GDP shrunk by 0.36%. A
recession is a period of temporary economic decline during which trade
and industrial activities are reduced, generally identified by a fall in
GDP in two successive quarters. The cause of the slump is believed
largely to be as a result of the slump of oil prices on the world
market. That situation has been worsened by renewed insurgency in the
Niger Delta region, the attacks on oil installations continue to disrupt
production of oil in the region.
Subscribe to:
Post Comments (Atom)