Nigeria Overtakes South Africa As Africa’s Largest Economy

Nigeria has overtaken South Africa as the continent’s largest economy, a report by Bloomberg has shown.

Nigeria’s re-emergence as Africa’s biggest economy followed South Africa’s slump into its second recession in two years, as severe rolling power blackouts frustrate President Cyril Ramaphosa’s attempt to revive growth.

The ruling All Progressives Congress (APC) welcomed Nigeria’s new dominant economic status, which it attributed to the policies of President Muhammadu Buhari-led administration to stimulate growth.

The South African economy contracted 1.4 per cent in the fourth quarter of 2019, according to official statistics released on Tuesday, far outpacing analysts’ forecast of a 0.2 per cent decline.

The latest gross domestic product (GDP) figures, released by Stats SA, showed that the economy contracted by 1.4 per cent in the fourth quarter of 2019, which followed a contraction of 0.8 per cent in the third quarter of last year.

In addition to the shrinking economy, seven out of 10 industries in South Africa contracted in the fourth quarter as well. Only finance, mining and personal services grew, but not enough to prevent the country from falling into an inevitable recession.

The main sectors that hindered economic growth included the transport and the communications industry, which shrunk by 7.2 per cent and contributed to the 1.4 per cent fall in GDP.

The largest sector to contribute to South Africa’s recession was construction, which has declined for six consecutive quarters. However, agriculture also proved to be the economy’s main drag in 2019.

“The manufacturing industry dipped by 1.8 per cent and agriculture fell by 7.6 per cent, owed to late rains and heat waves. The electricity, gas and water supply industry also boomed in the fourth quarter. Mining experienced a slight growth of 1.8 per cent, which contributed just 0.1 of a percentage point to economic growth in the fourth quarter.

“The finance industry grew by 2.7 per cent, contributing 0.6 of a percentage point to South Africa’s overall growth,” a statement by South Africa’s statistics agency stated.

According to the Financial Times, the contraction came after a 0.8 per cent drop in economic output during the previous quarter, leading to South Africa’s second recession — defined as two quarters of negative growth — since 2018.

Owing to this, Bloomberg, in a report, noted that “to the question of whether South Africa or Nigeria, the two countries that account for almost half of sub-Saharan Africa’s gross domestic product, is the biggest economy on the continent has long depended on which exchange rate you use for the West African nation.

“But now both the official naira rate of N306 per dollar and the weaker market exchange rate of around N360 that almost all investors use put Nigeria on top.

“Nigeria’s economic growth beat forecasts in the fourth quarter, helping its economy to expand the most in four years in 2019 as oil output increased and the central bank took steps to boost credit growth.

“GDP in the West African country stood at $476 billion or $402 billion, depending on the rate used. South Africa’s economy went in the opposite direction.”

On the other hand, for South Africa, its full year expansion was 0.2 per cent, the least since the global financial crisis and even less than the central bank and government estimated. Based on an average rand-dollar exchange rate of 14.43 for the year, GDP was $352 billion.

“South Africa’s weak growth adds to pressure on the central bank to lower the benchmark interest rate at its Monetary Policy Committee meeting March 19, especially after the U.S. Federal Reserve’s emergency rate cut Tuesday amid risks from the spread of the Coronavirus.

“Projections show Nigeria’s economy will continue to grow faster than South Africa’s. While the International Monetary Fund cut its forecast for Nigeria’s 2020 growth to two per cent, from 2.5 per cent last month, due to lower oil prices, South Africa’s GDP is forecast to expand only 0.8 per cent,” the report said.

APC Hails Buhari’s Economic Policies

Meanwhile, the APC has hailed the economic policies of the Buhari-led administration following the re-emergence of Nigeria as Africa’s biggest economy.

The National Publicity Secretary of the party, Mallam Lanre Issa-Onilu, in a statement yesterday, said since the Nigerian economy exited recession in 2017, the country’s economic growth has not been a fluke but a result of deliberate practices and policies of the Buhari administration.

This, he said, has increased transparency in governance, diversification of the economy away from oil, improved fiscal management and a healthy protectionist approach which has aided the growth and increased the capacity of domestic producers and in turn, created jobs.

“This is not a small feat and should be celebrated by all. The All Progressives Congress (APC) congratulates the president, the APC family and indeed all Nigerians. Those expecting the worst and wishing the country ill-fortune should now give up. The task of developing a nation is a collective one. Politics should not drive Nigeria apart; it should unite us when the interest of our nation is involved.

“Of course, there are still a lot of challenges on the way. The journey is not going to be a walk in the park. That is not unusual, considering the level of decay our nation has sunk into under the watch of the Peoples Democratic Party (PDP) and the current efforts of the PDP leaders to slow down our progress as a nation. However, this government, under the capable hand of President Buhari, is single-minded and courageous enough to lead our country to the promised land,” the party added.

According to APC, the hugely successful anti-corruption efforts such as the implementation of a Treasury Single Account (TSA) that allows the government to better track and manage its resources and a more transparent government payroll and personnel system that eliminated duplication and “ghost workers” have alleviated poverty and made more cash available for critical infrastructure projects.

53 thoughts on “Nigeria Overtakes South Africa As Africa’s Largest Economy

  • June 21, 2020 at 2:24 am
    Permalink

    Thanks for the auspicious writeup. It actually was a leisure account it.
    Look complex to far delivered agreeable from you! By the way, how could we be in contact?

    Reply
  • June 21, 2020 at 11:10 am
    Permalink

    What’s up to every one, the contents present at this
    web page are in fact remarkable for people knowledge, well, keep up the nice work fellows.

    Reply
  • June 26, 2020 at 6:20 pm
    Permalink

    It’s fantastic that you are getting thoughts from this paragraph as well as from our dialogue made at this time.

    Reply
  • June 26, 2020 at 10:09 pm
    Permalink

    I believe everything composed made a lot of sense.

    But, what about this? suppose you were to create a awesome post title?

    I ain’t suggesting your content is not good., however suppose you added a post title to maybe grab people’s
    attention? I mean Nigeria Overtakes South Africa As Africa's Largest Economy – Topragists
    is a little boring. You could peek at Yahoo’s front page and note how they write article headlines to get viewers to open the links.
    You might add a related video or a related pic or two to get readers excited about everything’ve written.
    Just my opinion, it could bring your blog a little bit more interesting.

    Reply
  • June 27, 2020 at 8:26 am
    Permalink

    Excellent site you have here.. It’s difficult to find high
    quality writing like yours nowadays. I truly appreciate people like you!
    Take care!!

    Reply
  • June 29, 2020 at 12:02 am
    Permalink

    Spot on with this write-up, I honestly feel this site needs a great deal
    more attention. I’ll probably be back again to read more, thanks for the info!

    Reply
  • July 7, 2020 at 5:24 pm
    Permalink

    I simply want to tell you that I am beginner to blogs and certainly savored your blog site. More than likely I’m want to bookmark your blog post . You amazingly have fantastic well written articles. Thanks a bunch for revealing your website page.

    Reply
  • July 9, 2020 at 5:56 am
    Permalink

    Hi there! Someone in my Myspace group shared this site with us so I came to give it a look. I’m definitely loving the information. I’m bookmarking and will be tweeting this to my followers! Outstanding blog and wonderful style and design.

    Reply
  • July 10, 2020 at 4:23 pm
    Permalink

    Hrmm that was weird, my comment got eaten. Anyway I wanted to say that it’s good to be aware that somebody else also mentioned that as I had trouble finding the exact same info elsewhere. That was the first place that told me the answer. Thanks.

    Reply
  • July 14, 2020 at 9:00 pm
    Permalink

    There are a couple of interesting points soon enough in this post but I don’t know if I see these people center to heart. You can find some validity but I’ll take hold opinion until I consider it further. Good post , thanks and we want much more! Combined with FeedBurner also

    Reply
  • July 21, 2020 at 2:40 pm
    Permalink

    Hi, I do believe this is an excellent web site. I stumbledupon it 😉 I am going to come back yet again since i have book marked it. Money and freedom is the greatest way to change, may you be rich and continue to help others.

    Reply
  • July 25, 2020 at 7:43 pm
    Permalink

    This excellent website certainly has all the info I needed about
    this subject and didn’t know who to ask.

    Reply
  • July 27, 2020 at 9:46 am
    Permalink

    Greate post. Keep writing such kind of information on your site.
    Im really impressed by your blog.
    Hello there, You’ve done an incredible job. I’ll certainly
    digg it and personally suggest to my friends.
    I’m sure they will be benefited from this site.

    Reply
  • July 30, 2020 at 2:10 pm
    Permalink

    I really like it when folks come together and share opinions. Great blog, stick with it!

    Reply
  • August 1, 2020 at 4:21 pm
    Permalink

    This is a topic which is close to my heart… Take care! Where are your contact details though?

    Reply
  • August 6, 2020 at 5:42 pm
    Permalink

    You could certainly see your enthusiasm in the work you write.

    The arena hopes for even more passionate writers such as you
    who aren’t afraid to mention how they believe. All the time follow your heart.

    Reply
  • August 6, 2020 at 5:58 pm
    Permalink

    It’s going to be end of mine day, but before finish I am reading this impressive post to improve my
    know-how.

    Reply
  • August 14, 2020 at 2:13 pm
    Permalink

    I think the admin of this web page is genuinely working hard in favor of his web site,
    as here every stuff is quality based data.

    Reply
  • August 14, 2020 at 3:27 pm
    Permalink

    You made some good points there. I checked on the net for more info about the issue and found most individuals will go along with your views on this website.

    Reply
  • August 24, 2020 at 9:38 am
    Permalink

    Good day! I just wish to give you a huge thumbs up for your
    great information you’ve got here on this post.

    I will be coming back to your website for more soon. cheap flights 34pIoq5

    Reply
  • August 24, 2020 at 11:09 pm
    Permalink

    I’m not sure where you are getting your info, but great topic.
    I needs to spend some time learning much more or understanding more.
    Thanks for wonderful info I was looking for this info for my mission.
    34pIoq5 cheap flights

    Reply
  • August 25, 2020 at 10:02 am
    Permalink

    Aw, this was an extremely nice post. Spending some time and actual effort
    to make a top notch article… but what can I say… I put things off a
    whole lot and don’t seem to get nearly anything done.
    cheap flights 2CSYEon

    Reply
  • August 26, 2020 at 2:30 am
    Permalink

    Hi! I could have sworn I’ve visited this site before but after looking at a few of the articles I realized it’s new to me. Anyways, I’m definitely happy I discovered it and I’ll be bookmarking it and checking back regularly!

    Reply
  • August 26, 2020 at 3:08 am
    Permalink

    Hi Dear, are you in fact visiting this website daily, if so then you will absolutely obtain good knowledge.

    Reply
  • August 26, 2020 at 7:37 am
    Permalink

    You’re so awesome! I do not suppose I’ve truly read through a single thing like this before. So nice to find somebody with original thoughts on this issue. Really.. thank you for starting this up. This site is one thing that is required on the web, someone with a bit of originality!

    Reply
  • August 26, 2020 at 7:37 am
    Permalink

    After I initially commented I appear to have clicked on the -Notify me when new comments are added- checkbox and from now on each time a comment is added I recieve 4 emails with the same comment. Perhaps there is a way you can remove me from that service? Appreciate it!

    Reply
  • August 27, 2020 at 8:17 pm
    Permalink

    Do you have any video of that? I’d care to find out some additional information.

    Reply
  • August 27, 2020 at 8:28 pm
    Permalink

    I’ve read a few excellent stuff here. Definitely price bookmarking for revisiting.
    I surprise how a lot effort you place to create such a great informative web site.

    Reply
  • August 28, 2020 at 10:18 am
    Permalink

    You need to take part in a contest for one of the finest
    websites on the net. I’m going to recommend this blog!

    Reply
  • August 31, 2020 at 5:24 am
    Permalink

    I was recommended this web site by my cousin. I’m not sure whether this post
    is written by him as no one else know such detailed about my problem.
    You’re incredible! Thanks!

    Reply
  • September 5, 2020 at 10:03 am
    Permalink

    My brother suggested I might like this web site.
    He was totally right. This post truly made my day. You can not imagine simply how much time I had spent for this information! Thanks!

    Reply
  • September 12, 2020 at 7:34 pm
    Permalink

    If some one wishes expert view on the topic of blogging and site-building afterward i advisehim/her to pay a visit this weblog, Keep up the good job.

    Reply
  • October 5, 2020 at 3:57 am
    Permalink

    Aw, this was an exceptionally good post. Finding the time and actual effort to make a superb article… but what can I say… I procrastinate a lot and never manage to get nearly anything done.

    Reply
  • October 6, 2020 at 7:32 pm
    Permalink

    Would you mind generally if I mention several of your current blogs on condition that I give you acknowledgement and furthermore article sources returning to your site? My net page is in the similar area of interest as your own and my targeted customers would certainly benefit from many of the data that you offer right here. Please don’t hesitate to tell me if this is okay with you. Many thanks!

    Reply
  • October 7, 2020 at 10:07 am
    Permalink

    I have been surfing online more than three hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. Personally, if all website owners and bloggers made good content as you did, the net will be much more useful than ever before.

    Reply
  • October 17, 2020 at 10:17 pm
    Permalink

    I’m excited to find out this web site. I have
    to to thank you for ones time as a result fantastic read!!

    I definitely savored every little bit of it and i also do you have
    bookmarked to consider new information on your own blog.

    Also visit my web-site … JuniorYPrehm

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *