NBS: Reduced consumption led to GDP decline in 2016

The National Bureau of Statistics (NBS) says the gross domestic product in real terms declined in the third and fourth quarters of 2016.

The NBS made this known in its ‘Nigerian Gross Domestic Product Report on Expenditure and Income Approach’ for the third and fourth quarter of 2016.

According to the report, the decline followed the negative growth trend from the first half of 2016.

It explained that the household consumption and government consumption expenditures led to the decrease in GDP in both the third and fourth quarter of the year under review.

The bureau, however, said a strong recovery in growth in net exports, particularly in the fourth quarter, helped to stem the decline.

According to the report, the national disposable income recorded a strong growth in comparison to the GDP in the second half of 2016 in real terms.

NAN reports that it partly attributed this to increases in other net transfers from the rest of the world.

The report said year on year growth in domestic compensation of employees in real terms declined.

The bureau further said the operating surplus declined in the third and fourth quarters but grew overall in real terms in 2016.