Household Consumption Closes 2020 At 16.59%, Says NBS
The total household consumption expenditure in the country rose 16.59 percent to stand at N13.92 trillion in the fourth quarter of 2020.
The National Bureau of Statistics (NBS) stated Wednesday in its Gross Domestic Product report (Expenditure and Income Approach) Report which noted that the National Disposable Income grew by 4.44 percent in the third quarter of 2020 and 3.13 percent in the fourth quarter of 2020.
“In the third quarter of 2020, the Nigeria’s real GDP at basis prices grew – 3.62 percent year on year basis, marking a second consecutive quarter of negative real GDP growth after -6.10 percent recorded in the second quarter (Q2). In the fourth quarter of 2020 however, growth turned positive, recording 0.11 percent in Q4 year on year.
Nevertheless, the negative quarterly growth rates recorded in Q2 and Q3 2020 resulted in annual growth rate of -1.92 percent for 2020, compared to 2.27 percent recorded in 2019, and compared to the third and fourth quarters of 2019, the growth performance in 2020 was slower by terms, year on year.
For 2020, the annual growth rate in real household consumption expenditure growth rates at 99.18 percent and 12.13 percent in Q3 and Q4 2020 respectively, year on year, while the annual growth rate stood at 61.58 percent in 2020 compared to 8.78 percent in 2019.
According to the report, Net Exports recorded positive growth rates in the first two quarters of 2020 but turned negative in the third and fourth quarters of 2020. Net exports grew in real terms in Q3 and Q4 2020 by -52.39 percent and -72.61 percent respectively. As a result, on an annual basis, net exports recorded a growth rate of -29.55% in 2020 compared to 7.64 percent recorded in 2019.
National disposable income grew by 4.44 percent in the third quarter of 2020 and 3.13 percent in the fourth quarter of 2020. For the annual figure in 2020, growth in national disposable income stood at 3.34 percent. In the third quarter of 2020, Nigeria’s real GDP at basic prices grew by -3.62 percent on a year on year basis.
Household Consumption Expenditure, in Q3 and Q4 2020 grew by 6.10 percent and 16.59 percent in real terms year on year. For 2020, the annual growth rate in real household consumption expenditure stood at 0.81 percent compared to -1.00 percent in 2019.
Compensation of Employees, during the third and fourth quarters of 2020 grew by -2.32 percent and compared to 8.99 percent in 2019.6.3 percent respectively in real terms on year on year basis. For 2020, the growth rate stood at 0.96 percent compared to 0.35 percent in 2019.
Household Consumption accounted for the largest share of real Gross Domestic Product at market prices, representing 58.09 percent and 60.43 percent in Q3 and Q4 2019 respectively, compared to 63.63 percent and 70.45 percent in the corresponding quarters of 2020. Net Exports, which represented 11.00 percent of total real GDP at market prices in Q3 2020, however declined considerably in Q4 to 4.65 percent.
The share of GeneralGovernment Consumption expenditure represented 10.43 percent in Q3 but fell to 7.14 percent in Q4 2020. Gross Fixed Capital Formation accounted for 13.24 percent of real GDP in Q3, rising to 14.91 percent in Q4 2020.
The share of Non-Profit Institutions Serving Households (NPISH) rose from less than 1 percent in Q1 and Q2 2020 to 1.30 percent in Q3 and 2.19 percent in Q4 2020. For the first time, NPISH had a share above 1 percent arising from interventions on COVID-19 pandemic.
“Overall, in 2020, real household final consumption expenditure rose by0.81 percent from -1.06 percent recorded in 2019. On a quarter on quarter basis, real household consumption expenditure grew by 38.85 percent in Q3 and 20.76 percent in Q4 2020.
” In nominal terms, household final consumption expenditure grew by -1.83 percent in Q3, and -0.71 percent in Q4 2020, resulting in an annual growth rate of -1.48 percent.
The annual growth rate was -11.33 percent points slower than recorded in the previous year. On a quarter on quarter basis, growth was recorded at 23.04 percent in Q3, and 7.68 percent in Q4 2020, compared to the preceding year’s 11.74 percent , and 6.46 percent in the corresponding quarters”.
According to the NBS report, Household consumption accounted for 63.63 percent of real GDP at market prices in Q3 2020, and even higher at 70.45 percent in Q4 2020.
“Final consumption expenditure by non-profit institutions serving households recorded growth rates of 289.76 pee in Q3 and 418.54 percent in Q4 2020, year on year in real terms.
For annual 2020, growth in real expenditure for this component was recorded at 212.36% year on year. Quarter on quarter, growth in real NPISH expenditure stood at 106.61 percent in Q3 but dropped to 82.75 percent in Q4 2020. This expenditure component accounted for 1.30 percent of real GDP expenditure at market price in Q3 and a share of 2.19 percent in Q4 2020. For 2020, it accounted for 1.24% of total real GDP expenditure at market prices, ” the report added.
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