Q2 2020 Real GDP Shrinks by 6.10% as Oil & Gas, Trade Sectors Contract amid COVID-19 Pandemic

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In line with our expectation, Nigeria’s real Gross Domestic Product (GDP) contracted year-on-year (y-o-y) by 6.10% to N15.90 trillion in Q2 2020, down from a 1.87% growth registered in Q1 2020 – amid the negative impact of COVID-19 pandemic which compelled the government to restrict movements, especially in April 2020.

The non-oil sector shrank y-o-y by 6.05% (and contracted by 4.43% quarter-on-quarter) to N14.48 trillion – this was chiefly due to the 31.77%, 21.99% and 16.59% contraction witnessed in Construction, Real Estate and Trade sectors to N0.51trillion, N0.85 trillion and N2.27 trillion respectively (which jointly accounted for 22.85% of GDP).

Y-o-Y Real GDP Growth Rates

Q2 2020 Real GDP Shrinks by 6.10% as Oil & Gas, Trade Sectors Contract amid COVID-19 Pandemic.
Source: National Bureau of Statistics, Cowry Research
Growth Rates: Year-on-Year

Despite the negative impact of COVID-19 on the local economy, financial services, information & communications and agricultural sectors, which jointly accounted for 46.48% of total GDP, all grew yo-y by 18.49%, 15.09% and 1.58% respectively in Q2 2020. The growths printed by info. & comm. and financial services sectors were due to the heavy reliance on technology by most companies and individuals to carry out their operations.

Q2 2020 Real GDP Shrinks by 6.10% as Oil & Gas, Trade Sectors Contract amid COVID-19 Pandemic.
Source: National Bureau of Statistics, Cowry Research
Growth Rates: Year-on-Year

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Q2 2020 Real GDP Shrinks by 6.10% as Oil & Gas, Trade Sectors Contract amid COVID-19 Pandemic.
Source: National Bureau of Statistics, Cowry Research
Growth Rates: Year-on-Year

The oil & gas sector which moderated y-o-y by 6.63%, from a 5.06% growth recorded in Q1 2020, was on the back of a 10.40% q-o-q decline in Nigeria’s crude oil output to 1.81mbpd. Also, Bonny light price tanked q-o-q by 42.32% to USD29.88 per barrel in Q2 2020.

Given the ease in lockdown, which began from the month of May 2020, coupled with the sustained rise in crude oil prices, we expect a slower GDP contraction rate in Q3 2020; hence, the local economy may slide into recession in Q3 2020. However, with the numerous stimulus packages, we expect Nigeria to be out of recession in 2021.

 

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Q2 2020 Real GDP Shrinks by 6.10% as Oil & Gas, Trade Sectors Contract amid COVID-19 Pandemic - Brand SpurQ2 2020 Real GDP Shrinks by 6.10% as Oil & Gas, Trade Sectors Contract amid COVID-19 Pandemic - Brand Spur

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Q2 2020 Real GDP Shrinks by 6.10% as Oil & Gas, Trade Sectors Contract amid COVID-19 Pandemic - Brand SpurQ2 2020 Real GDP Shrinks by 6.10% as Oil & Gas, Trade Sectors Contract amid COVID-19 Pandemic - Brand Spur

Latest News

DHL donated IDR2.4 billion to SOS Children’s Villages in six years of partnership in Indonesia

  • With DPDHL Group's support and contribution of €140,000 (IDR2.4 billion) since inception, program has benefitted more than 2,500 young people in Indonesia
  • GoTeach program aims to improve youth employability, especially now with challenges posed by the COVID-19 pandemic

JAKARTA, INDONESIA - Media OutReach - 8 March 2021 - DHL Global Forwarding, the leading international freight specialist arm of Deutsche Post DHL Group (or DPDHL Group), today commemorates six years of partnership with SOS Children's Villages (SOSCV) at a DHL GoTeach Donation Ceremony. Working together with the non-governmental organization (NGO) focused on supporting children without parental care and families at risk, DPDHL Group has reached out to more than 2,500 beneficiaries in Indonesia through mentorship and educational activities and a contribution of €140,000 (IDR2.4 billion) since 2014.

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Q2 2020 Real GDP Shrinks by 6.10% as Oil & Gas, Trade Sectors Contract amid COVID-19 Pandemic - Brand Spur

"As one of the largest employers in the world, the Group is supportive of programs that prepare job seekers for the working world, especially during such challenging times. Today, we are proud to commemorate our six years of partnership with SOS Children's Villages at the DHL GoTeach Donation Ceremony," said Thomas Grunau, Global Head of Business Strategy & Digitalization, DHL Global Forwarding.

During the ceremony, Grunau presented a donation of €5,000 to SOSCV Indonesia in support of the Pandemic GoTeach project, which offered an online employability training to more than 1,000 young people all over Indonesia in 2020. With the support of 12 volunteers, the online training sessions, covering employability related topics such as job interview and resume writing skills, will continue in 2021 until social distancing measures ease up. The program is the brainchild of Elok Vinindya Wardhani, Marketing and Corporate Communications, DHL Global Forwarding Indonesia, who was recognized for her initiative and effort with the organization's CEO award in the category sustainability.

DHL Global Forwarding Indonesia President Director, Vincent Yong said, "In today's rapidly changing world, education paves the way to a stable, sustainable and prosperous tomorrow. Through the GoTeach program, DHL hopes to help the youth in Indonesia to develop the skills and confidence to enter the professional world. With 509 employees across all business divisions volunteering for more than 3,000 hours in the past six years, GoTeach also delivers opportunities for our employees to actively contribute and play a role in the community."

GoTeach is a group-wide corporate responsibility program aimed at improving youth employability for those from disadvantaged socio-economic backgrounds. Educational and mentorship activities are regularly organized to better prepare them to enter the working world.

"The sustainability and power of an economy and the society depend on a strong educational system and targeted efforts to develop the next generation of working professionals. During the COVID-19 pandemic, jobs and livelihoods have been impacted, deepening the need for training and mentoring programs, such as GoTeach, for our youth to continue to develop their competencies and capabilities to reach their dreams. SOS Children's Villages is happy and proud to join hands with DHL Indonesia to deliver on this commitment," said Gregor Hadiyanto Nitihardjo, National Director SOS Children's Villages Indonesia.

According to UNICEF, there are approximately 24 million students who have dropped out of school as a result of the pandemic, adding to the 870 million students or half of the world's student population in 51 countries who have yet to return to school.

In Indonesia, DHL Global Forwarding together with DHL Express and DHL Supply Chain have continuously focused on developing youth's potential since 2014, sharing knowledge on soft and hard skills as well as supporting career development and employability for young people. The GoTeach program has been conducted in several locations across Indonesia such as Meulaboh, Banda Aceh, Medan, Jakarta, Lembang, Semarang, Bali and Flores. For the past six years, DHL employees have actively become mentors in several GoTeach activities such as skill preparation, job shadowing, DHL facility tours, internships and dream camp activities at SOS Children's Villages to improve employability. The initiative is also part of DPDHL Group's effort to contribute to local communities where they operate.


DHL – The logistics company for the world

DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 380,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as "The logistics company for the world".

About SOS Children’s Villages

SOS Children's Villages is a non-profit organization that provides alternative care for children who lost or at risk of losing their parental care. Founded in 1949 in Innsbruck, Austria, SOS Children's Villages now are in 136 countries, including Indonesia. Today, Indonesia SOS Children's Villages have nurtured and assisted more than 5.500 children in 11 cities in Indonesia: Lembang, Jakarta, Bogor, Semarang, Yogyakarta, Tabanan, Maumere, Banda Aceh, Meulaboh, Medan, and Palu. For further information, visit: www.sos.or.id | @desaanaksos


*Special Notes

SOS Children's Villages prioritizes family-based care and we form substitute families for children who lost or at risk of losing their parental care. The Mothers and Children establish a family relationship with each other just like any family out there (family-care), so we avoid terms such as an orphanage, foster child, foster mother, and orphans that is replaced with the term a child who lost or at risk of losing their parental care. In SOS Children's Villages, we also pay close attention to children's interests and we also protect their privacy, so any information that is related to their background and personal matter will only be shared with particular parties and will not be published to the public.

Q2 2020 Real GDP Shrinks by 6.10% as Oil & Gas, Trade Sectors Contract amid COVID-19 Pandemic - Brand Spur
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