Chart of the day: It's a V Shaped Recovery

The chart above is V-Shaped!

Nigeria’s Bureau of Statistics revealed on Tuesday that Nigeria reported a real GDP Growth rate of 0.11% for the fourth quarter of 2020, the first time following three consecutive quarters of negative GDP growth rate.

Why this matters

A V-shaped recovery means the economy got out of a recession faster than expected.
Several analysts had various predictions on what Nigeria’s economic recovery chart might look like. The predictions were between U, V, L, or W, shaped.
This was also the headline of the Nairametrics Q3 2020 Economic Outlook Webinar where most of our panelists settled for a U-shaped recovery.
Most analysts had opined that Nigeria’s GDP Growth rate will contract again in the 4th quarter of 2020 before eeking our growth in the first quarter of 2021.
However, the latest GDP number indicates a GDP growth rate in the 4th quarter thus a V-shaped recovery.

At 0.11%, this is the slowest GDP Growth rate Nigeria has recorded since the GDP was rebased in 2011. In the second quarter of 2017 when Nigeria also exited a recession, the GDP Growth rate was 0.72% and was considered relatively tepid at the time.