The Gross domestic Product (GDP) is the total monetary or market value of all finished goods and services produced within a country’s border in a specific period. This value addition could be adjusted for inflation, the real GDP or unadjusted for inflation, the nominal GDP.
When GDP is adjusted for, changes in real output is put into consideration. For better understanding, real GDP is a macroeconomic measure of the value of the economy’s output adjusted for price changes. This change in prices of goods and services is described as inflation or deflation.
On the other hand, nominal GDP is another macroeconomic measure of the value of the economy’s output that is not adjusted for inflation.
It is against this backdrop that we would be looking at some sectors of the economy with the aim of measuring performance and their contribution to the country’s economic outlook when prices of goods and services have been adjusted for (real GDP measure) and not adjusted for prices (nominal GDP).
The Nigerian Gross Domestic Product Report for Quarter 2, 2021 (Q2, 2021) released by the Nigerian Bureau of Statistics, gave credence to the Nigeria GDP growth of 5.01% (year-on-year) in real terms in the second quarter of 2021. Aggregate GDP in this quarter stood at ₦39,123,713.32 million in nominal terms (i.e. not accounting for changes in goods and services).
This is higher than what was obtainable at the second quarter of 2020 wherein the aggregate GDP was ₦34,023,197.60 million suggesting a year on year nominal growth rate of 14.99%. The implication of which is that regardless of the changes in the prices of goods and services produced in the economy in the second quarter of 2021, there was a slight increase in the GDP growth rate for this quarter compared to what obtained in the second quarter of 2020. Furthermore, the nominal growth rate in Q2 2021 was found also to be higher than what obtained in Q1 2021. The growth difference was 12.25% higher in Q2 2021 than Q1 2021
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