Nigeria will lose its place as Africa’s third-largest economy in 2024 to Algeria after a decade of slow growth, inflationary pressures and naira depreciation, an IMF projection shared. Faster GDP growth in South Africa, Egypt, and Algeria will see Nigeria stay fourth for the next five years.
According to the IMF, persistent macroeconomic challenges on the continent have slowed growth, yet the outlook is stable. The Washington-based institution projects South Africa ($373 billion), Egypt ($348 billion), Algeria ($267 billion), and Nigeria ($253 billion) as Africa’s top four economies until 2030.
According to IMF World Economic Outlook, South Africa, Africa’s most industrialised country, will become Africa’s biggest economy with a GDP of $373 billion–a position the IMF expects it to retain until 2027.
This is despite South Africa’s struggles with blackouts, crime, corruption, and depreciating currency. Its 0.6% GDP growth was mainly driven by growth in the manufacturing, finance, real estate & business services sectors.
Since 2023, inflation has accelerated in Nigeria and Egypt and both nations have endured currency devaluations. Yet,…
Adonijah Ndege
<
https://techcabal.com/2024/04/19/algeria-will-edge-out-nigeria-as-africas-third-largest-economy-imf-report-shows/
