Nigeria among other countries in the world has come forth as the Africa’s largest economy for the fifth consecutive year after narrowly edging out Egypt to the second position by 0.2 per cent.
This was revealed in the data released by the World Bank, which identified Nigeria top position as the largest economy on the continent for the fifth consecutive year in 2022, with a nominal Gross Domestic Product (GDP) of $477.4 billion in the year in view.
The Bank said Nigeria’s economy grew by 8.3 per cent year-over-year in 2022 from $440.8 billion recorded in the previous year.
The giant of Africa, as it is mostly referred to, accounted for 17.4 per cent of the African economy in the review year ($2.7 trillion).
According to the data in third position was South Africa with an estimate of $405.9 billion, while other countries that made the list of the top 10 largest economies in Africa include Algeria with a sum of ($191.9 billion), Ethiopia ($126.8 billion), Kenya ($113.4 billion), Angola ($106.7 billion), Tanzania ($75.7 billion), Ghana ($72.8 billion), and Cote d’Ivoire ($70 billion).
According to the data, Nigeria has topped the list since 2018 when it overtook South Africa as the largest African economy.
Egypt followed with a GDP estimate of $476.7 billion, having recorded a 12.3 per cent growth in its GDP from $424.7 billion in 2021. In third position was South Africa with an estimate of $405.9 billion.
It is worth noting that the top three economies on the continent account for almost half of the continent’s economy (49.5 per cent).
Other countries that made the list of the top 10 largest economies in Africa include Algeria ($191.9 billion), Ethiopia ($126.8 billion), Kenya ($113.4 billion), Angola ($106.7 billion), Tanzania ($75.7 billion), Ghana ($72.8 billion), and Cote d’Ivoire ($70 billion).
Egypt is, however, catching up with Nigeria on the list of largest economies on the African continent after the northeastern country expanded by 12.3 per cent to $476.7 billion, almost levelling with Nigeria.
Egypt surpassed South Africa in 2020 as the second-largest African economy and has remained in that position to date
On the list of fastest-growing economies on the African continent, Angola topped the list with a growth rate of 62.5 percent. Specifically, the GDP of the central African country increased from $65.7 billion recorded in 2021 to $106.7 billion in 2022.
According to the African Development Bank (AfDB), the growth was spurred by sustained high oil prices, which averaged $100.65/barrel in 2022.
Sudan followed with a growth rate of 50.9 per cent as GDP grew from $34.2 billion to $51.7 billion in the review year. Zambia recorded a growth rate of 34.5 per cent to stand in third position, while Guinea was the fourth fastest growing with a nominal growth rate of 31.9 per cent. Seychelles grew by 23.4 per cent to $1.59 billion in 2022.
On the flip side, Zimbabwe recorded the highest contraction of 27.1 per cent as its nominal GDP dropped from $28.4 billion to $20.7 billion. Ghana followed with an 8 per cent contraction, while the GDP of Sierra Leone dipped by 6.6 per cent year-on-year.
Meanwhile, the continent’s economy expanded by 3.8 per cent to $2.7 trillion from $2.5 trillion recorded in the previous year, despite different headwinds, which impact most economies on the continent, ranging from high inflationary pressure, fiscal deficit, and high debt amongst others.
The African Development Bank has said that Africa is poised to become the second-fastest growing region globally in 2023, following Asia, underscoring the resilience of its economy in the face of numerous global shocks.
However, the attainment of this projected growth hinges on both global circumstances and Africa’s capacity to enhance its economic resilience, as indicated by the 2023 African Economic Outlook report by the African Development Bank.
The report, unveiled by the regional bank, predicts that Africa will strengthen its recovery from the COVID-19 pandemic, leading to a 4.3 per centas increase in GDP growth in 2024, up from 3.8 per cent in 2022. It further highlights that 22 countries are expected to achieve growth rates exceeding 5 per cent.
It, however, recommended robust policy actions, including incentivising green industries, and providing guarantees at scale to de-risk private sector investments in managing natural capital across the continent.
It will be recalled that the National Bureau of Statistics (NBS) rebased Nigeria’s economy in April 2014 during which Nigeria emerged Africa’s largest economy, overtaking South Africa. The NBS is yet to review the report.
