Nigeria’s GDP report for the second quarter was recently released showing that Gross Domestic Product (GDP) grew by 5.01% (year-on-year) in real terms in the second quarter of 2021, marking three consecutive quarters of growth following the negative growth rates recorded in the second and third quarters of 2020.
The growth represented the fastest quarterly growth in five years, with a single sector, the Trade Sector contributing about 16.66% of GDP, a sharp rise of 22% in Q2 2021, and its fastest since at least 2016.
According to a recent report by Nairametrics, the reason for trade growth lies in an economic phenomenon termed base effects. In 2020, Nigeria’s trade sector suffered a massive contraction of 16.5%, at the time the 5th straight contraction that started in the third quarter of 2019 when the government announced its border closure. Read More.