Real GDP Growth Expands to 3.19% in Q2 2024

Nigeria's real GDP grew by 3.19% in Q2 2024, up from 2.98% in Q1 2024 and 2.51% in Q2 2023. This growth was mainly driven by a robust performance in the services sector (3.79%). Despite this positive trend, it's notable that only 16 of the 46 activities monitored by the NBS showed growth, with many productive sectors either slowing down or contracting. This reflects the impact of interest rate hikes, higher logistics costs, and weak aggregate demand.

The oil sector experienced a notable growth of 10.15%, supported by increased production and higher oil prices. Conversely, the non-oil sector grew by a flat 2.8%, indicating challenges in various areas.

What we expect in Q3 2024:

We expect a further increase in real GDP growth in the third quarter of 2024 due to several factors. Firstly, the harvest season is expected to boost commodity supply, thus bolstering agricultural sector growth. In addition, the reversal in the upward inflation trend increases the chances of the MPC halting the interest rate hikes, and possibly commencing its easing cycle if the decline in inflation is sustained in the coming months. Also, the minimum wage increase is expected to boost consumer spending, pushing up aggregate demand.??

Read full insights here - https://gdl.com.ng/blog/real-gdp-growth-expands-to-3.19%25-in-q2-2024