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Inthe second quarter of 2019, Nigeria's real GDP at basic prices grew by2.12% on a year on year basis. Growth accelerated further in the third andfourth quarters by 2.28% and 2.55%. The steady increase in quarterly growthresulted in an annual growth rate of 2.27% for 2019, compared to 1.91% in 2018on a year on year basis. Compared to the second quarter of 2018, theperformance in 2019 indicated an increase of 0.61% points while the third andfourth quarters were 0.47% points and 0.17% points higher, respectively, thanthe corresponding quarters of 2018 .

Household Consumption Expenditure,in Q2, Q3 and Q4 grew by -1,33%, -3.7% and 0.38% in real terms, year on year.For 2019, the annual growth rate in real household consumption expenditurestood at -2.40% compared to 4.63% in 2018. Government Consumption Expenditurerecorded growth rates at 11.92%, 16.20% and 5.41% in Q2, Q3 and Q4respectively, year on year, while annual growth rate stood at 15.04% against39.85% in 2018.

Net Exports recorded positive growthrates in all four quarters of 2019, a departure from the trend in 2018. Whileno change was recorded in Q2 2019, net exports grew in real terms in Q3 and Q4by 17.94% and 3.4% respectively.  On anannual basis, net exports grew by 7.64% in 2019 compared to -17.45% recorded in2018.

National Disposable Income grew by 1.44% inthe second quarter of 2019, but recorded negative growth in Q3 (-0.61%) and Q4(-1.46%) on a year on year basis. For 2019, growth in national disposableincome stood at 0.38% compared to -1.03% in 2018. 

Compensation of Employees, duringthe second, third and fourth quarters of 2019 grew 10.71%, 11,23% and 9.79%respectively in real terms on year on year basis. For 2019, growth rate stoodat 8,99% compared to 12.22% in  2018.

Real Year-on-year Growth Rates of Key Aggregates (percent, %)* 

GDP by Expenditure

The Gross Domestic Product (GDP) can be derived asthe value of all goods and services available for final uses and export. GDP atmarket prices includes net taxes on products; taxes are subtracted to obtainbasic price GDP.

The expenditure approach measures the final usesof the produced output as the sum of Final consumption, Gross Capital Formationand Exports less Imports, which are considered in turn in this report.Consumption of fixed capital-a measure of depreciation of assets-comprises thedifference between Gross Domestic Product (GDP) and Net Domestic Product (NDP)and is also considered in this report.

In 2019, the GrossDomestic Product grew in real terms by2.27% year-on-year.This was a significant improvement compared to 1.91% recorded in 2018, and0.82% recorded in 2017.