Shifting Powers: South Africa Leads, Nigeria Falls In African GDP Rankings 2024
(MENAFN- The Rio Times) In 2024, Africa's economic landscape presents a mix of promise and hurdles. South Africa leads the continent with a GDP of $373 billion.
Egypt follows closely at $347.6 billion, while Algeria rounds out the top three at $266.8 billion. Nigeria is projected to be the 4th largest Economy in Africa in 2024, with an estimated GDP of $252.7 billion.
This represents a significant drop for Nigeria, which was previously the largest economy in Africa. The country has fallen behind South Africa, Egypt, and Algeria.
These figures reflect the continent's economic potential. However, they also mask significant disparities between nations. Many African countries are experiencing rapid growth, outpacing global averages.
Oil remains a crucial factor for several economies. Nigeria's oil sector contributes over 5% to its GDP. Libya's dependence is even more pronounced, with oil accounting for 40% of its economic output.
Interestingly, the largest economies don't always translate to the highest per capita GDP.
Seychelles, a small island nation, boasts the highest GDP per capita in Africa. This metric offers insights into individual prosperity across the continent.
The African Development Bank projects an overall real GDP growth of 3.8% for 2024. This rate positions Africa as the second-fastest-growing region globally, behind only Asia.
Africa's Economic Growth Projections and Challenges
East Africa is expected to lead the continent's growth, with a projected 5.1% increase in 2024. North Africa's growth remains steady at 3.9%, while Central Africa may see a slight moderation to 3.5%.
Southern Africa faces challenges, with growth projected at a sluggish 2.2%. This reflects ongoing economic struggles in South Africa, the region's largest economy.
West Africa shows promise, with growth expected to reach 4% in 2024. However, political instability in some countries casts uncertainty over these projections.
Niger stands out with a projected growth rate of 11.2%, driven by agricultural and mining activities. Senegal follows at 8.3%, benefiting from infrastructure investments and emerging oil and gas sectors.
These growth figures come despite significant challenges. Many African nations grapple with currency devaluations, debt burdens, and the lingering effects of the COVID-19 pandemic.
Climate change poses an additional threat, particularly to food security. Approximately 60% of Africa's population experiences moderate to severe food insecurity, far above the global average.
To sustain growth, experts recommend investing in human capital and natural resource management. Improving governance and promoting economic diversification are also crucial steps.
As Africa navigates these complex economic waters, its resilience and potential for growth remain evident. The continent's journey towards prosperity continues, shaped by both global forces and local initiatives.
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