Coinciding business reports from yesterday confirmed that the Nigerian and South African economy have bounced out of recession.
The 2 large economies in Africa slid into recession at different times last year. With several efforts and policy reforms, both countries are making it out of recession at impressive rates.
South Africa through an improvement in the agricultural sector conquered recession in the second quarter of the year. SA made a growth of 2.5% quarter-on-quarter for the 3 months to the end of June after two quarters of decline.
The boost in the economy has been attributed to more work and improvement in the agricultural sector. SA reports that the boost was more than expected.
In June, farmers gladly announced they were anticipating their highest maize harvest in 40 years. The harvests were so for their wheat crops
However, General Pali Lehohla, a statistician says the economy expanded 2.5% in the 3 months to the end of June after contracting by 0.6% in the first quarter and by 0.3% in the final quarter of 2016.
Currently SA is recovering from last year’s drought with a 33.6% expansion in the economy. Aside agriculture, other helpful sectors include mining, manufacturing and trade.
The mining industry expanded by 3.9% as it was supported by increased production of coal and gold. There was also a 3.5% growth in the finance industry.
As SA jubilates over the development, Statistics South Africa says the “longer-term indicators show subdued growth.”
On the other hand, the Nigerian economy according to the National Bureau of Statistics NBS is rebounding from 5 consecutive quarters of contraction.
NBS report says that Nigeria’s GDP expanded by 0.55% in the second quarter of 2017 year-on-year. It also showed that quarter-on-quarter growth for the same period was 3.23%.
The 2017 second quarter growth rate was 2.04% higher than the recorded rate in the corresponding quarter of 2016 (-1.49%). It was also reported to be higher by 1.46% points from rate recorded in the preceding quarter.
Also responsible for the good news of exiting recession were the aggressive economic activities in such sectors as agriculture, oil and the gradually growing manufacturing industries.
According to NBC report,
“The major driver of growth in the non-oil sector was the Agriculture Sector (Crop Production), finance and insurance, electricity, gas, steam, air conditioning supply and other services.”
Oil production given the period of time is estimated to have averaged at 1.84 million barrels per day; which translates to 0.15 million barrels higher than the daily average production recorded in the first quarter of 2017.
The non-oil sector in itself also grew by 0.45% in real terms during the quarter.
According to Vanguard the sector contributed 91.11 percent to the nation’s GDP, lower from share recorded in the second quarter of 2016 (91.21%) and in the first quarter of 2017 (91.47%).
Like SA, Nigerian authorities also say the economy is still fragile regardless of the improvements. More works are still expected to go into further growth of both economies.
It is also expected that in time the growth will reflect in the lives and expenditures of the masses.