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Nigeria, Africa’s biggest economy – Bloomberg

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NIGERIA has emerged the current biggest economy in Africa.

  The country posted the feat after overtaking South Africa that recently slumped into recession, for the second time in two consecutive years.

  Nigeria’s GDP grew by 2.55 per cent in the fourth quarter of 2019, making an all-time highest quarterly growth since the 2016recession, translating to the largest GDP in Africa.

  A report by Bloomberg stated that Nigeria’s economic growth beat forecasts in the fourth quarter of 2019 as oil output increased and Central Bank of Nigeria (CBN) took steps to boost credit growth.

  According to the report, while explaining that the criterion had long depended on which exchange rate was used for Nigeria, the question of whether South Africa or Nigeria was the biggest economy on the continent to rest.

  “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. The GDP in the West African country stood at $476bn or $402bn, depending on the rate used. South Africa’s economy went the opposite direction. It 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 per cent, the least since the global financial crisis, and even less than the Central Bank and government estimated. Based on an average rand-dollar exchange rate of 14.43 for the year, the GDP was $352billion,” the report said.

  Bloomberg also projects that Nigeria’s economy will continue to grow faster than International Monetary Fund (IMF)’s latest forecast that pegged the country’s growth at 2 percent in comparison to 0.8 percent which it gave for South Africa.

  Experts say the trend in which exchange rate of Naira at its official and pararrell market windows stabilise at N306 per dollar puts Nigeria tops in investor preference.

  Meanwhile, All Progressives Congress (APC) has attributed the Nigeria’s re-emergence as Africa’s biggest economy to “fitting economic scorecard of President Muhammadu Buhari-led administration.”

  National Publicity Secretary APC, Lanre Issa-Onilu, dropped the hint yesterday in a statement, congratulating President Buhari, the party and the entire Nigerians for the feat.

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