The manufacturing sector’s real GDP growth in the second quarter of 2023 was 2.20% on an annual basis.
Although this was lower than the same quarter in 2022, it was higher than the previous quarter and the one before it by 0.81% points and 0.59% points, respectively.
The sector saw a contraction with a growth rate of -14.98% from one quarter to the next.
The sector’s contribution to real GDP in the second quarter of 2023 was 8.62%, down from the first quarter’s 10.13% and the second quarter of 2022’s 8.65 percent and 8.65 percent, respectively.
Manufacturing sector nominal GDP growth increased significantly during the second quarter of 2023, rising by 29.90% year over year.
This represented a significant increase of 24.69% points above the figure of 5.21% observed in the similar period of 2022.
Additionally, it increased by 12.05% points over the 17.85% level from the prior quarter.
On a quarterly basis, the industry did, however, see a fall in growth, registering -5.76% for the period.
In the second quarter of 2023, the manufacturing sector contributed 14.55% of the nominal GDP, up from the similar period of 2022 (12.97%) but down from the first quarter of 2023 (15.70%).
The manufacturing industry includes businesses that produce cement, beverages, refined oil, food, tobacco, textiles, rubber processing, footwear, paper, chemicals, and pharmaceuticals, among other things.
The manufacturing sector’s decreased contribution to real GDP is not unexpected given the challenging macroeconomic environment it experienced throughout the quarter.
Many had to cut production, which resulted in lower margins, due to rising energy prices, an increase in the cost of importing raw materials, an increase in the exchange rate, higher lending rates, and other factors.
In addition, manufacturers have consistently urged the FG to solve problems with various taxes, monetary policy, and power in the nation.