GDP: LCCI projects upward growth trajectory

The Lagos Chamber of Commerce and Industry (LCCI) says sustaining the country’s reported Q2 2021 Gross Domestic Product (GDP) performance will result in an upward growth review in the coming weeks.

Dr Chinyere Almona, Director-General, LCCI, said this in reaction to the 5.01 per cent GDP growth in the second quarter of 2021 as reported by the National Bureau of Statistics (NBS) on Thursday.

Almona noted that the figure reflected a strong and more desirable growth when looked at the non-oil growth of 6.7 per cent compared with the 0.79 per cent in Q1 2021.

“This shows an increase in non-oil sector activities through growth in trade, information and communication technology (ICT), transportation, electricity, agriculture and manufacturing,” she said.

She, however, stated that the country must watch and respond appropriately to the major threats to this growth performance like the third wave of Coronavirus (COVID-19) infections, rising spate of insecurity among others.

She noted that the contraction in ICT growth in Q2 was simply a base effect factor when you look at the positive growth in Q2 compared to what was recorded in preceding quarters especially in 2020.

“The Information and Communication Sector grew by 5.50 per cent in Q2 2021 from 6.31 per cent in Q1 2021 and 16.52 per cent in Q2 2020.

“The concentration on the use of ICT during the lockdown periods of 2020 recorded a double-digit growth rate.

“Since this year we have recorded single-digit because the use concentration may have slightly reduced especially as comparatively fewer people work from home against what was obtained in 2020,” she said.