At the backdrop of continued inflationary pressures, rising unemployment and poverty rates, growth in household consumption expenditure has further slowed down in the second quarter of 2022 (Q2’22).
According to the National Bureau of Statistics (NBS) GDP, Expenditure and Income Approach report for Q1 and Q2 2022 released yesterday, real household final consumption expenditure grew by just 2.32 percent in the second quarter of this year, Q2’22, representing a 6.2 percentage points quarter-on-quarter, QoQ, decline in growth rate when compared with 8.5 percent growth recorded in Q1’22.
NBS said: “On a quarter-on-quarter basis, real household consumption expenditure grew by 8.5 percent in Q1, and 2.3 percent in Q2’22. Household final consumption, in real terms, grew by 6.94 percent and 17.6 percent in Q1 and Q2’22 respectively, on a YoY basis.
“However, these growth rates were lower compared to the growth rate of their corresponding quarters of 2021 which recorded 47.16 percent and 42.4 percent respectively.
“The observed trend since 2020 indicates that real household consumption expenditure declined in Q1 and Q2, accounting for negative growth rates informed by the COVID-19 pandemic.
“However, positive growth rates were recorded in Q3 and Q4 of 2020 as well as the four quarters of 2021. As the economy recovers from the shock of the pandemic, Q1 and Q2’22 growth rates have shown lower rates relative to the corresponding quarters of 2021.
“Household consumption accounted for 76.79 percent of real GDP at market prices in Q1’22, and 78.9 percent in Q2’22.”
“In response to falling growths in exports and imports in 2020, growth in the net balance of trade (or net exports) was negative from Q3’20 to Q3’21 but positive in Q4’21.
“On a year-on-year, YoY, basis, Q1’22 recorded a -98.46 percent growth rate in real terms and Q2 indicated a -92.76 percent growth in the net trade balance.”
On exports of goods and services, NBS said: “In the first and second quarters of 2022, real exports grew by 10.12 percent and -30.52 percent , YoY compared to -70 percent and 28.45 percent in Q1 Q2 21 respectively. QoQ, however, growth in real exports was negative in Q1’22, a shift from positive growth recorded since Q2’21.
“Nevertheless, Q2’22 recorded a positive growth of 5.76 percent, a departure from the Q1’22 rate.
On imports it stated: “On a QoQ basis, imports grew by 24.8 percent in Q1 and declined slightly by 0.37 percent in Q2’22. In Q1 2022 and Q2 2022, import numbers recorded growth rates of 40.34 percent and 56.9 percent respectively, with rates higher than Q1 2021 and lower than Q2’21.
“In 2020, imports of goods and services declined significantly in the four quarters of the year in real terms but rose since Q1 2021. by 0.47 percent.
