The National Bureau of Statistics, NBS, today said that real household consumption expenditure grew year-on-year (YoY) by 3.3 per cent in the second quarter of 2023 (Q3’23).
This reflects a departure from the negative trends recorded in the previous quarters since Q2’22 when growth was -5.21 percent.
NBS disclosed this in its Nigerian Gross Domestic Product (Expenditure and Income Approach) Report for Q1 and Q2 2023.
The bureau stated: “Household final consumption, in real terms, grew by -24.95 per cent and 3.30 per cent in Q1 and Q2 of 2023 respectively, on a year-on-year basis.
“Moreover, the growth rate of Q1’23 was lower compared to the growth rate of the corresponding quarter of 2022 which was 8.66 per cent and Q2 of 2023 was higher than Q2 of 2022 which recorded -5.21 per cent.
“The observed trend since 2020 indicates that real household consumption expenditure declined in Q1 and Q2 of 2020, accounting for negative growth rates informed by the pandemic.
” However, positive growth rates were recorded since Q3’20 as recovery from the pandemic was witnessed, while growth became negative from Q2’22 to Q1’23 occasioned by rising prices, the cash crunch witnessed earlier this year as well as the current challenging economic conditions.
“Furthermore, growth in Q2’23 stood positive recorded at 3.3 per cent, a departure from the negative trend recorded in the previous quarter.
“The growth rates of Q1 of 2023 and Q2 of 2023 indicate a lower rate relative to the corresponding quarter of Q1’22 and a higher rate compared to Q2′ 22.
“On a quarter-on-quarter basis, real household consumption expenditure decreased by 20.29 per cent in Q1’23 and rose by 11.68 per cent in Q2 of 2023.
“Household consumption accounted for 57.18 per cent of real GDP at market prices in Q1 23, and 64.05 per cent in Q2’23.
The bureau also noted that in Q1’23, the GDP by expenditure grew in real terms by 2.31 per cent YoY and recorded 2.51 per cent in Q2’23.
It added: “This shows a sustained positive trajectory since Q4’20. “However, this was a reduction of 0.8 per cent in growth of Q1’23 and a fall of 1.03 per cent in Q2’23 compared to the corresponding period of 2022.”
According to NBS, The GDP can be derived as the value of all goods and services available for final uses and export while the expenditure approach measures the final uses of the produced output as the sum of final consumption, Gross Capital Formation, and exports less imports, which are considered in turn in the report.
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