South Africa has been projected to surpass Nigeria as Africa’s largest economy in 2024.
This is according to reports from the International Monetary Fund in its recent World Economic Outlook.
The IMF’s World Economic Outlook anticipates South Africa’s gross domestic product (GDP) to reach $401 billion by 2024 at current prices.
The projected figure would exceed Nigeria’s GDP of $395 billion and Egypt’s GDP of $358 billion.
South Africa is the most industrialised nation on the continent and is expected to claim the top position in 2024.
The IMF projected that South Africa’s economy will grow by 0.9 per cent this year and 1.8 per cent in 2024.
However, the report projected that Nigeria will assume its number-one spot in 2026 while South Africa will trail behind Eggyt.
Furthermore, there’s the potential for even faster growth, ranging from 2.5 to 3 per cent, provided South Africa addresses its power supply issues, resolves logistical bottlenecks, and implements other necessary reforms.
Meanwhile, the economic growth in Nigeria is expected to slow to 2.9 per cent in 2023 from 3.3 per cent in the previous year.
However, the IMF estimates the economy will grow by 3.1 per cent in 2024 and attributes the lag to the effects of high inflation, which currently stands at 26.72 per cent.