Africa’s two largest economies, Nigeria’s and South Africa’s, have come out of recession following growth in the last quarter, reports Footprint to Africa.
Figures released by the Statistics South Africa showed that the country moved out of recession in the second quarter of the year, following a 2.5 percent expansion of the economy.
This marked the end of two-quarters of contraction, beating market expectations of a 2.1 percent rise in gross domestic product (GDP). It was also the highest growth rate in a year with agriculture, forestry and fishing making the largest upward contribution, namely field crops and horticultural products, a report from South African Business Report confirmed.
Nigeria experienced more marginal growth than its South Africa, however, expanding by 0.55 percent in the second quarter. The country’s federal government welcomed the news with caution and optimism.
It said it would continue to drive economic growth by vigorously implementing the Economic Recovery & Growth Plan (ERGP) launched earlier this year by President Muhammadu Buhari.
A statement by Mr. Laolu Akande, Senior Special Assistant to the President on Media & Publicity, Office of the Vice President, said “the overall economic plan and direction of the administration has resulted, among others, in sustained restoration of oil production levels.’’
The sustenance, he explained, was made possible because of enhanced security and stability in the Niger Delta.
“The figures released by NBS for the second quarter of this year (Q2 2017) show that the economy grew by 0.55 percent from -0.91 percent in Q1 2017 and -1.49 percent in Q2 2016. This in effect means that the Nigerian economy has exited recession after five successive quarters of contraction,’’ said Dr. Adeyemi Dipeolu, Economic Adviser to the President.
“This positive growth was attributable to both the oil and non-oil sectors of the economy,” he added.