Nigeria has been projected to fall behind South Africa, Egypt, and Algeria to become Africa’s fourth largest economy in 2024.
In its April 2024 forecast, the International Monetary Fund (IMF) Nigeria which has held the title of “Africa’s largest economy” since the GDP rebasing in 2013, is expected to have a total GDP of $253 billion in 2024, primarily due to the devaluation of the Naira.
The IMF said South Africa will be Africa’s largest economy with a GDP of $373 billion, followed by Egypt with $348 billion, and Algeria with $267 billion.
Based on IMF’s estimates, Nigeria’s GDP in US Dollars declined from $477 billion in 2022, to $375 billion in 2023, it is 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 is projected to hit N296.4 trillion.
Data from IMF showed that Nigeria was the largest economy in Africa in 2022, but a devaluation of the Naira caused the country 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 will see Nigeria and Egypt’s fortunes decline, with South Africa taking the reins as Africa’s largest economy.
IMF estimates that Nigeria’s GDP will grow by 3.34 per cent in 2024, up from the 2.86 per cent growth rate posted in 2023. South Africa’s GDP is estimated to grow by 0.9 per cent in 2024, from 2023’s 0.6 per cent GDP growth rate.
Egypt’s GDP is projected to grow at 3.0 per cent in 2024, a decline from its 2023’s GDP growth rate of 3.76 per cent.