South Africa slumped to its second recession in two years

Nigeria, South Africa make up half of sub-Saharan Africa’s GDP

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As if a recession wasn’t enough bad news for South Africa, it’s now confirmed as the continent’s second-largest economy.


The answer to the question of whether South Africa or Nigeria, the two countries that account for almost half of sub-Saharan Africa’s gross domestic product, is the biggest economy on the continent has long depended on which exchange rate you use for the West African nation. But now both the official naira rate of 306 per dollar and the weaker market exchange rate of around 360 that almost all investors use put Nigeria tops.

Number One
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.

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%, 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.

Projections show Nigeria’s economy will continue to grow faster. While the International Monetary Fund cut its forecast for Nigeria’s 2020 growth to 2% from 2.5% last month due to lower oil prices, South Africa’s GDP is forecast to expand only 0.8%.

— With assistance by Paul Wallace

Nigeria, South Africa make up half of sub-Saharan Africa’s GDP

Buchyke8:
Still unconfirmed

Buchyke8:
Still unconfirmed

Commentor:


IPOB Facebook page would confirm it.

Be waiting.

Wolgrace:
If truly source is legit, the credit should go to all Nigerians. We all as hardworking people contributes to it.

Congrats to all Nairalanders too.

chriskosherbal:
Not just big theoretically it should reflect in the day to day lives of the ordinary Nigerians, bringing about the desired positive they crave for otherwise it's equal zero.

Area4Area:
I'm sure if it was Nigeria that was said to have gone into recession again you'd have been happy and cursing Buhari, Tinubu and APC.
Abeg go siddon abeg, Nigeria's economy is the largest on the continent and economic growth is getting faster, deal with that for now.

nameo:


Do you know that this is nothing to celebrate here, and infact that this indicts this Govt??

Clue: In 2014, Nigeria became the largest economy in Africa and valued at $509.9bn whilst South Africa was $370.3bn.

Today, Nigerian economy has according to your report in the OP declined to $472/402bn i.e a decline of about $38bn( it would even be more if you take into account inflation rate between then and now).

The only reason SA overtook us was that our growth since then has been very sluggish with us entering into recession(successive "negative" growth). The reason why you just overtook SA again is that they just entered their 2nd recession within the period.

In real terms, none of the countries grew.

So quit that Buhari worship. On the economy, as at with almost everything else, he has failed.

Rossinnki:


Mehn, but we carry weight for this continent sha..

Dammit.

In fact, looking at the above statement, one might as well say that without Nigeria, there is nothing like Africa.

Yet some idiots want to split up this country into little, inconsequential Liberias. When you sneeze nobody will notice.

Rubbish.

niyisky:


When it's bad news, let's blame Buhari but when it's good news, let's applaud Nigerian people. Nigerians sha...I hail una

nameo:


Do you know that this is nothing to celebrate here, and infact that this indicts this Govt??

Clue: In 2014, Nigeria became the largest economy in Africa and valued at $509.9bn whilst South Africa was $370.3bn.

Today, Nigerian economy has according to your report in the OP declined to $472/402bn i.e a decline of about $38bn( it would even be more if you take into account inflation rate between then and now).

The only reason SA overtook us was that our growth since then has been very sluggish with us entering into a recession(successive "negative" growth). The reason why you just overtook SA again is that they just entered their 2nd recession within the period.

In real terms, none of the countries grew.

So quit that Buhari worship. On the economy, as with almost everything else, he has failed.

nameo:


Do you know that this is nothing to celebrate here, and infact that this indicts this Govt??

Clue: In 2014, Nigeria became the largest economy in Africa and valued at $509.9bn whilst South Africa was $370.3bn.

Today, Nigerian economy has according to your report in the OP declined to $472/402bn i.e a decline of about $38bn( it would even be more if you take into account inflation rate between then and now).

The only reason SA overtook us was that our growth since then has been very sluggish with us entering into a recession(successive "negative" growth). The reason why you just overtook SA again is that they just entered their 2nd recession within the period.

In real terms, none of the countries grew.

So quit that Buhari worship. On the economy, as with almost everything else, he has failed.

saaron:
If Biafra were independent nation from 1966 to date, the country will be dragging economic might with Asian tigers like China, South Korea, Singapore, Malaysia etc. Biafra would have launch Africa positively on the world map as a black economy powerhouse. A people that organized themselves to manufacture Amoured tanks and spectacular weapons from scratch to hold Nigeria for 3 good years to the amazement of America and Europe shows the ability and ingenuity of Biafrans. Imagine them channeling that same energy and spirit to develop their economy. The black race would have gain more respect. But because of the virus of one Nigeria, that reality was dashed.
Nigeria is nothing but a glorified village. A country cursed with poor infrastructure, can't even boast of a world class city. Countries like Ivory Coast have better and well developed cities than Nigeria.
The fact that the God forsaken country is even struggling economically with South Africa is enough to call Nigeria a failed state. South Africa's economy is far more developed in manufacturing, service industry, commerce, power, infrastructure than Nigeria.
ONE NIGERIA IS DEAD!

Rossinnki:


Abeg make we hear word. How many cities are in Ivory coast? One or two maximum. Please spare us that rubbish. As for Biafra, she made weapons out of desperation cos no one else would sell her weapons. This ''ingenuity'' nonsense smacks of racial inferiority complex. We take Asian and European manufacturing for granted, but when Africans do it it shows ''ingenuity''? What's that about?

And there is really nothing to suggest that Biafra would have been especially productive, given the huge oil wealth that would have accrued to the govt and relatively small population.

nameo:


Do you know that this is nothing to celebrate here, and infact that this indicts this Govt??

Clue: In 2014, Nigeria became the largest economy in Africa and valued at $509.9bn whilst South Africa was $370.3bn.

Today, Nigerian economy has according to your report in the OP declined to $472/402bn i.e a decline of about $38bn( it would even be more if you take into account inflation rate between then and now).

The only reason SA overtook us was that our growth since then has been very sluggish with us entering into a recession(successive "negative" growth). The reason why you just overtook SA again is that they just entered their 2nd recession within the period.

In real terms, none of the countries grew.

So quit that Buhari worship. On the economy, as with almost everything else, he has failed.

Commentor:


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.

saaron:

ONE NIGERIA IS DEAD!

Area4Area:
Hold on, what was calculated there was the GDP nominal which takes into account the exchange rate to the dollar, if the naira becomes 150 to a dollar today, GDP nominal would increase. The 509.9 billion figure was when the naira was higher than this.

GDP PPP doesn't take fully the exchange rate to the dollar and it actually gives the real state of the economy, someone who earns 350k naira in Nigeria and someone earning $1k in the US, who do you think would be living better. In dollar terms, they're both earning $1k. This is what the GDP PPP evaluates and that's why our GDP PPP is over $1.2 trillion today despite the 470 billion as the GDP nominal.

Commentor:


From Bloomberg in 2014:

The revision may boost the size of the economy by as much as 60 percent to between $384 billion and $424 billion, according to London-based Renaissance Capital Ltd., lifting Nigeria ahead of South Africa in the World Bank’s global rankings.

nameo:


Mr man, what are comparing? Apples Vs Oranges.

The growth for last quarter of 2019 was bout 2.55%. That is low by Nigeria's standard. In 2014, growth was above 6%.

The reason it is the best in 4 years is cos other quarterly growth since this Govt came in has been even more dismal. And like i said earlier, it is an indictment on Buhari handling of the economy

nameo:


The reason why you just overtook SA again is that they just entered their 2nd recession within the period.

''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.

South Africa’s economy went the opposite direction...''

nameo:


What is your point please.

Yes, the figures quoted and compared are GDP nominal figures.

Commentor:
Nigeria Now Tops South Africa as the Continent’s Biggest Economy
By Prinesha Naidoo

March 3, 2020, 10:16 AM EST
South Africa slumped to its second recession in two years

Nigeria, South Africa make up half of sub-Saharan Africa’s GDP

Sign up to our Next Africa newsletter and follow Bloomberg Africa on Twitter

As if a recession wasn’t enough bad news for South Africa, it’s now confirmed as the continent’s second-largest economy.


The answer to the question of whether South Africa or Nigeria, the two countries that account for almost half of sub-Saharan Africa’s gross domestic product, is the biggest economy on the continent has long depended on which exchange rate you use for the West African nation. But now both the official naira rate of 306 per dollar and the weaker market exchange rate of around 360 that almost all investors use put Nigeria tops.

Number One
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.

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%, 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.

Projections show Nigeria’s economy will continue to grow faster. While the International Monetary Fund cut its forecast for Nigeria’s 2020 growth to 2% from 2.5% last month due to lower oil prices, South Africa’s GDP is forecast to expand only 0.8%.

— With assistance by Paul Wallace

https://www.bloomberg.com/news/articles/2020-03-03/nigeria-now-tops-south-africa-as-the-continent-s-biggest-economy

South Africa as an economy in recession is far far better than Nigeria. You people should have some shame in this dead country. Our zero % in terms of security and 1000% in corruption is more than enough to put us at last position when comparing countries with standards in Africa.

See them! Quoting me and reigning insults on their generations.

A lot of you jobless morons here have not pass the borders of this country. A lot of you have never been to South Africa so y’all can’t understand a single thing when I tell you South Africa is a world class nation, far better than Nigeria. How many Nigerian companies do we have in South Africa? Do we have basic infrastructure? Stable electricity? good roads, educated police who respects citizens rights? Until we have all basic amenities that can define us a reputable country, we should hide ourselves in shame. Those of you quoting me, y’all think 30k monthly N-power alert na achievement abi? I dey shame for una.