GDP growth doesn’t mean improved living standards – Firm warns Nigerians
Investment and Advisory firm, Comercio Partners, has stated that Nigerians should be cautions with the rising GDP growth rate as economic expansion may not translate to improved standard of living for Nigerians.
The firm stated this in its reaction to the latest Gross Domestic Product (GDP) report published by the National Bureau of Statistics (NBS), where Nigeria’s GDP grew to 3.19% on the back of rising crude oil output.
According to the firm, Nigeria’s economy may be ‘immiserizing’- a situation where improved GDP growth does not affect the living standards of the population.
Addressing the downward trends in agriculture and manufacturing is essential for achieving balanced and inclusive economic growth.
READ ALSO: Nigeria, others need 9% GDP growth annually to beat extreme poverty; World Bank
According to the NBS Nigeria’s economy expanded by 3.19% year-on-year in real terms during the second quarter of 2024, exceeding the 2.51% growth recorded in the same quarter of 2023 and the 2.98% growth observed in the first quarter of 2024.
The economic growth contrasts with macroeconomic realities in the nation with elevated cost of living triggered by weakened naira reaching N1600/$ on the official market.
Furthermore, the Central Bank of Nigeria has hiked interest rate by 800 basis points since February this year, thereby increasing the cost of accessing capital for businesses.
Nairametrics
Proofreading by Gift Luckson, Editor at Neptune Prime.
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