South Africa may overtake Nigeria to become the continent’s largest economy, according to IMF projections.
The World Economic Outlook, published by the IMF, projects that by 2024, South Africa, one of the most industrialized nations in Africa, will have a GDP close to $401 billion.
South Africa’s GDP is expected to reach $401 billion based on current prices in 2024, compared to $395 billion for Nigeria and $358 billion for Egypt, according to the IMF’s World Economic Outlook.
According to the assessment, which was issued last week, Africa’s most industrialized country is predicted to remain at the top for only a year before falling behind Nigeria once more and eventually dropping to the third position behind Egypt in 2026.
The forecast comes as the government led by President Bola Tinubu continues to struggle to revive the country’s plummeting economy.
This comes as the FG enacts significant policy changes. Nigerians are facing difficulties as a result of these shifts and a decline in oil production, such as inflation and the depreciation of the naira.
News About Nigeria recalls that President Tinubu had eliminated the fuel subsidy upon assuming office. The move was part of efforts to reduce government spending.
Although Nigeria is facing some initial difficulties as a result of these actions, more substantial benefits are expected down the road.
According to IMF projections, the GDP will expand by 3.1% in 2024, as opposed to 2.9% in 2023.
In a June analysis, the World Bank revealed that Nigeria emerged as the largest economy on the African continent for the fifth straight year in 2022, with a nominal GDP of $477.4 billion.