{"id":8818,"date":"2021-05-23T22:24:39","date_gmt":"2021-05-23T21:24:39","guid":{"rendered":"https:\/\/dailynews24.ng\/?p=8818"},"modified":"2021-05-23T22:24:39","modified_gmt":"2021-05-23T21:24:39","slug":"q1-gdp-rate-not-reflective-of-manufacturing-sector-reality-lcci-dg","status":"publish","type":"post","link":"https:\/\/dailynews24.ng\/q1-gdp-rate-not-reflective-of-manufacturing-sector-reality-lcci-dg\/","title":{"rendered":"Q1: GDP rate not reflective of manufacturing sector reality \u2014 LCCI DG"},"content":{"rendered":"
The Lagos Chamber of Commerce and Industry (LCCI) has said that the 2021 first quarter 0.40 percent Gross Domestic Product (GDP) increase, though a pleasant surprise, is not reflective of the manufacturing sector’s current realities.<\/div>\n
<\/div>\n
Dr. Muda Yusuf, Director-General, LCCI, said this in reaction to the National Bureau of Statistics (NBS) GDP Q1 2021 report on Sunday, in Lagos.<\/div>\n
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According to the report, the nation\u2019s GDP rose from 0.11 percent in the fourth quarter of 2020 to 0.51 percent in the first quarter of 2021, translating to a 0.40 percent increase.<\/div>\n
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LCCI decries current inflation rates of 18.12% in Nigeria<\/a><\/strong><\/div>\n
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Yusuf said the manufacturing sector’s recovery from a negative growth territory in Q4 2020 to a positive growth level of 3.4 percent in Q1 2021 was a pleasant surprise.<\/div>\n
<\/div>\n
He noted that the sector had been grappling with an unprecedented foreign exchange illiquidity crisis over the past few months.<\/div>\n
<\/div>\n
The LCCI Director-General said that structural, irregular policies, institutional and macroeconomic challenges had also bedeviled the sector.<\/div>\n
<\/div>\n
<\/div>\n
As a result, the LCCI DG stressed that the NBS data did not reflect the reality of the experiences of most manufacturers.<\/div>\n
<\/div>\n
He, however, welcomed the expansion of 2. 28 percent in the agricultural sector, 6.31 percent of the Information and Communication Technology (ICT) sector, and 8.66 percent of the electricity sector.<\/div>\n
<\/div>\n
Yusuf said that a lot of issues remained to be resolved in the electricity sector, with supply in many parts of the country still epileptic and the metering program not keeping pace with demand.<\/div>\n
<\/div>\n
<\/div>\n
\u201cEvidently, the economy is still struggling to recover from the shocks of the pandemic and related slip into recession.<\/div>\n
<\/div>\n
\u201cHowever, the first-quarter GDP data contained a few pleasant surprises.<\/div>\n
<\/div>\n
\u201cThe agricultural sector expanded by 2.28 percent despite the ravaging effects of insecurity, farmers’ herder’s clashes, and the displacement of many farming communities.<\/div>\n
<\/div>\n
\u201cMost foreign exchange dependent manufacturing sectors have not had a good experience over the past one year.<\/div>\n
<\/div>\n
\u201cAdmittedly, segments of manufacturing with high levels of backward integration had lesser degrees of shocks from the forex illiquidity and exchange rate depreciation in the economy.<\/div>\n
<\/div>\n
\u201cThe growth of 6.31 percent recorded in the ICT sector was expected given the opportunities created for ICT\u00a0 in the new normal.<\/div>\n
<\/div>\n
\u201cThe cost-reflective tariff appears to have impacted positively on the electricity sector which recorded 8.66 percent,\u201d he said.<\/div>\n
<\/div>\n
Yusuf said the trade sector’s continued contraction, which recorded negative growth of 2.43 percent in Q1 2021 and the transportation sector at 21.9 percent, was worrisome.<\/div>\n
<\/div>\n
He said that the hospitality and entertainment sectors which were still down needed more government attention.<\/div>\n
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\u201cWe note with concern the continued contraction of the trade sector grappling with headwinds arising from exchange rate depreciation and forex illiquidity,\u00a0 high inflationary pressures, and weak purchasing power.<\/div>\n
<\/div>\n
\u201cYet the sector is one of the biggest sources of employment, especially in the self-employment space.<\/div>\n
<\/div>\n
\u201cIt is equally worrisome that the transportation sector experienced the worst contraction at 21.9 percent in the first quarter of 2021.<\/div>\n
<\/div>\n
\u201cThis may be as a result of the growing insecurity on our roads and this goes to demonstrate the multidimensional impact of insecurity on the economy.<\/div>\n
<\/div>\n
\u201cThe hospitality and entertainment sectors have been in recession for over a year and the government needs to do a lot more to salvage the sector from complete collapse,\u201d he said. (NAN)<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The Lagos Chamber of Commerce and Industry (LCCI) has said that the 2021 first quarter 0.40 percent Gross Domestic Product (GDP) increase, though a pleasant surprise, is not reflective of the manufacturing sector’s current realities. Dr. Muda Yusuf, Director-General, LCCI, said this in reaction to the National Bureau of Statistics (NBS) GDP Q1 2021 report […]<\/p>\n","protected":false},"author":1,"featured_media":8540,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nQ1: GDP rate not reflective of manufacturing sector reality \u2014 LCCI DG - Daily News 24 - Latest Nigerian News<\/title>\n<meta name=\"description\" content=\"The Lagos Chamber of Commerce and Industry (LCCI) has said that the 2021 first quarter 0.40 percent Gross Domestic Product (GDP) increase,\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dailynews24.ng\/q1-gdp-rate-not-reflective-of-manufacturing-sector-reality-lcci-dg\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Q1: GDP rate not reflective of manufacturing sector reality \u2014 LCCI DG - 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