Business
US slips into recession after GDP contracts by 0.9% in Q2 2022
The United States of America recorded a 0.9% contraction in its gross domestic product in the second quarter of 2022, following a 1.6% annual decline recorded in the previous quarter.
The downturn in the economy of the world giant is following the significant rise in the prices of goods and services, largely attributed to the global energy crisis, which had spread to other areas of the economy.
Despite the contraction, personal consumption, which gives insight into the health of the US consumer, recorded a 1% growth, compared to 1.8% growth recorded in the first quarter, but still indicates evidence of strength. It is worth noting that the contraction was driven by weaker business inventory growth.
Recall that the US Bureau of Labour Statistics reported a new 40-year high inflation rate of 9.1% in June 2022, driven by higher prices of gasoline, food, and shelter. However, in a continuing bid to curb the raging inflation in the United States, the Federal Reserve has raised interest rates multiple times this year to almost 2.5%.
Typically, recession is defined as two consecutive quarters of contraction in the Gross Domestic Product. Going by the above definition, the world’s largest economy has fallen into a recession. However, the US does not use this definition in determining whether the economy is in a recession or not.
Notably, a non-profit, non-partisan organization called the National Bureau of Economic Research (NBER) determines when the U.S. economy is in a recession. The NBER committee made up of eight economists makes that determination, where they put into consideration many factors.
The Naira yesterday depreciated to N1,770 per dollar in the parallel market from N1,750 per dollar last weekend.
Similarly, the Naira depreciated to N1,675.62 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM.
Data from FMDQ showed that the indicative exchange rate for NAFEM rose to N1,675.62 per dollar from N1,652.62 per dollar last weekend, indicating N23 depreciation for the naira.
The volume of dollars traded (turnover) fell by 55.2 percent to $108.79 million from $243.05 million traded last week Friday.
Consequently, the margin between the parallel market and NAFEM rate widened to N117.38 per dollar from N97.38 per dollar last weekend.
The Nigeria National Petroleum Company Limited (NNPCL) has confirmed that the Port Harcourt Refinery in Rivers State has commenced crude oil processing.
The Chief Corporate Communications Officer of the compaanyy, Femi Soneye, broke the news on Tuesday.
Soneye revealed that the refinery will operate at 60 percent capacity and process 60,000bpd.
https://twitter.com/FM_Soneye/status/1861330633831620917?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1861330633831620917%7Ctwgr%5E776845f88f6fa6dd3c70082f4da1ee2632656999%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.vanguardngr.com%2F2024%2F11%2Fbreaking-port-harcourt-refinery-begins-crude-oil-processing%2F
“Today marks a monumental achievement for Nigeria as the Port Harcourt Refinery officially commences crude oil processing. This groundbreaking milestone signifies a new era of energy independence and economic growth for our nation,” Soneye said on Tuesday.
“Hearty congratulations to President Bola Ahmed Tinubu, the NNPC Board, and the exceptional leadership of GCEO Mele Kyari for their unwavering commitment to this transformative project. Together, we are reshaping Nigeria’s energy future!”
Soneye added that truck loading will commence on Tuesday (today), adding that the NNPCL is also “working tirelessly to bring the Warri Refinery back online soon”.
The National Bureau of Statistics (NBS) says Nigeria’s annual gross domestic product (GDP) grew by 3.46 percent in the third quarter (Q3) of 2024.
The NBS, in its GDP report published on Monday, said the growth rate is higher than the 3.19 percent recorded in Q2 2024.
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Bodex F. Hungbo, SPMIIM is a multiple award-winning Nigerian Digital Media Practitioner, Digital Strategist, PR consultant, Brand and Event Expert, Tv Presenter, Tier-A Blogger/Influencer, and a top cobbler in Nigeria.
She has widespread experiences across different professions and skills, which includes experiences in; Marketing, Media, Broadcasting, Brand and Event Management, Administration and Management with prior stints at MTN, NAPIMS-NNPC, GLOBAL FLEET OIL AND GAS, LTV, Silverbird and a host of others
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