Nigeria, the Africa’s largest economy in 2022, has slipped to fourth place this year and Egypt, which held the top position in 2023, has fallen to second behind South Africa after a series of currency devaluations.
Nigeria which has held the title of “Africa’s largest economy” since the GDP rebasing in 2013 now has a projected total GDP of $253 billion in 2024.
The IMF had earlier forecast in April 2024 that South Africa would be Africa’s largest economy with a GDP of $373 billion, followed by Egypt with $348 billion, and Algeria with $267 billion.
It is not a sudden flight for South Africa. It will be recalled that in 2023, the rainbow country was projected to overtake Nigeria as the largest economy in Africa.
According to IMF’s estimates, Nigeria’s GDP in US Dollars declined from $477 billion in 2022, to $375 billion in 2023, it has been estimated to drop to $253 billion in 2024.
However, in the Naira, the GDP improved from N202.4 trillion in 2022 to N234.4 trillion in 2023. For 2024, the GDP had been projected to hit N296.4 trillion.
The devaluation of the Naira primarily caused Nigeria to drop to third place in 2023, behind Egypt with a GDP of $394 billion and South Africa with a GDP of $378 billion.
In 2024, the devaluation of the Nigerian Naira and the Egyptian Pounds has seen Nigeria and Egypt’s fortunes decline, with South Africa taking the reins as Africa’s largest economy.
