The giant of Africa, ‘Nigeria’ has overtaken South Africa as the biggest economy in Africa as the latter slid into its second recession in two years, Bloomberg reports.
South Africa’s economy slumped into a second recession in consecutive years, contracting more than projected in the fourth quarter as power cuts weighed on output and business confidence. For the full year, expansion was 0.2%, the least since the global financial crisis, and even less than the central bank and government estimated. Based on a average rand-dollar exchange rate of 14.43 for the year, GDP was $352 billion.
Figures from Statistics South Africa (Stats SA) showed that agriculture, transport and construction contracted on a quarterly basis by 7.6%, 7.2% and 5.9% respectively, while electricity declined by 4% and retail 3.8%.
Overall, the country’s economy grew only 0.2 percent in 2019, the least since the global financial crisis, and even less than the central bank and government estimated, reports
Nigeria’s economy, however, rose by 2.27 percent in 2019 as the central bank took measures to boost credit growth while oil output increased.
The West African country’s economy expanded the most in four years in 2019, with its growth beating projections in the fourth quarter, said Bloomberg.
Nigeria’s economic growth beat forecasts in the fourth quarter, helping its economy to expand the most in four years in 2019 as oil output increased and the central bank took steps to boost credit growth. GDP in the West African country stood at $476 billion or $402 billion, depending on the rate used.