Nigeria's economy fared better than those of most advanced economies of the world last year, with her gross domestic product (GDP) growing by 7.85 percent, compared to a global average of 3.9 percent, according to the World Economic Outlook. Minister of Finance, Segun Aganga said in his presentation at the Institute of Directors (IOD) in Lagos at the weekend that Nigeria's GDP growth rate is among the highest in the world, behind those of China and India.
While average GDP growth rate for Sub-Saharan Africa is put at 4.7 percent, the minister said the GDP of South Africa, the biggest economy on the continent, grew by a mere 2.7 percent.
"Nigeria's GDP growth rate was higher than those of the high income nations. The GDP growth rate for the Organisation of Economic Cooperation and Development (OECD) nations averaged 2.7 percent; the Euro Area grew their GDP by 1.7 percent; that of the United States grew 2.8 percent, while the average for non-OECD nations 6.7 percent. The BRIC nations, made up of Brazil, Russia, India and China had GDP growth rates of 7.6 percent, 3.8 percent, 9.5 percent, and 10.0 percent respectively," he said.
According to Mr. Aganga, details of the country's macro-economic performance of the different sector of the economy showed that agriculture, wholesale and retail trade as well as manufacturing accounted for some of the highest contributions to the economy during the year. While the agricultural sector accounted for over 40.0 percent of the GDP during the year, wholesale and retail trade contributed about 24.3 percent, and manufacturing 18.7 percent.
He said that government is committed to diversifying the economic base away from oil and gas, the minister said available statistics from the National Bureau of Statistics (NBS) identified nine major sectoral growth drivers of the nation's economy. These include telecommunications (34.47 percent); solid minerals (12.28 percent); building and construction (12.16 percent); hotels and restaurants (12.01 percent); wholesale and retail trade (11.22 percent); real estate (10.68 percent); business and other services (9.92 percent) agriculture (9.74 percent) and manufacturing (7.94 percent).
Global imbalances
On perspectives on global economic growth outlook, he noted that though global economic recovery is strengthening, there are downside risks mostly from global imbalances, with economic risks associated mostly with market concerns on European debt crisis, particularly low interest rates in high income countries leading to large, volatile flows to dynamic developing countries These risks, the minister pointed out, may result in destabilising movements in exchange rates, commodity and asset prices, while inflation in emerging markets is likely to constitute a risk to growth, leading possibly to monetary tightening in some countries.
To check the adverse effect of these risks of the economies, particularly those of the developing countries, Mr. Aganga called for credible plans to restore fiscal sustainability; adoption of fiscal measures to facilitate employment and long-term competitiveness; enforcement of re-regulation of the financial sector as well as ensure a consistent and coordinated response to the crisis.
Source: http://234next.com
While average GDP growth rate for Sub-Saharan Africa is put at 4.7 percent, the minister said the GDP of South Africa, the biggest economy on the continent, grew by a mere 2.7 percent.
"Nigeria's GDP growth rate was higher than those of the high income nations. The GDP growth rate for the Organisation of Economic Cooperation and Development (OECD) nations averaged 2.7 percent; the Euro Area grew their GDP by 1.7 percent; that of the United States grew 2.8 percent, while the average for non-OECD nations 6.7 percent. The BRIC nations, made up of Brazil, Russia, India and China had GDP growth rates of 7.6 percent, 3.8 percent, 9.5 percent, and 10.0 percent respectively," he said.
According to Mr. Aganga, details of the country's macro-economic performance of the different sector of the economy showed that agriculture, wholesale and retail trade as well as manufacturing accounted for some of the highest contributions to the economy during the year. While the agricultural sector accounted for over 40.0 percent of the GDP during the year, wholesale and retail trade contributed about 24.3 percent, and manufacturing 18.7 percent.
He said that government is committed to diversifying the economic base away from oil and gas, the minister said available statistics from the National Bureau of Statistics (NBS) identified nine major sectoral growth drivers of the nation's economy. These include telecommunications (34.47 percent); solid minerals (12.28 percent); building and construction (12.16 percent); hotels and restaurants (12.01 percent); wholesale and retail trade (11.22 percent); real estate (10.68 percent); business and other services (9.92 percent) agriculture (9.74 percent) and manufacturing (7.94 percent).
Global imbalances
On perspectives on global economic growth outlook, he noted that though global economic recovery is strengthening, there are downside risks mostly from global imbalances, with economic risks associated mostly with market concerns on European debt crisis, particularly low interest rates in high income countries leading to large, volatile flows to dynamic developing countries These risks, the minister pointed out, may result in destabilising movements in exchange rates, commodity and asset prices, while inflation in emerging markets is likely to constitute a risk to growth, leading possibly to monetary tightening in some countries.
To check the adverse effect of these risks of the economies, particularly those of the developing countries, Mr. Aganga called for credible plans to restore fiscal sustainability; adoption of fiscal measures to facilitate employment and long-term competitiveness; enforcement of re-regulation of the financial sector as well as ensure a consistent and coordinated response to the crisis.
Source: http://234next.com
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