South Africa regains Africa’s largest economy title
JOBURG – South Africa reclaimed the number one economic spot in Africa.
The recent increasing strength of the South African rand (ZAR) against the US dollar (USD) has regained South Africa the number one economy spot in Africa.
Bloomberg is reporting that the South African economy regained the position of Africa’s largest in dollar terms, after losing it to Nigeria more than two years ago.
According to reports, the size of the country’s economy is US$301 billion at the rand’s current exchange, while Nigeria’s Gross Domestic Product (GDP) is US$296 billion, based on gross domestic product at the end of last year, published by the International Monetary Fund (IMF).
The rand gained more than 16 percent against the dollar since the beginning of this year, while Nigeria’s naira lost more than a third of its value after the central bank removed a currency peg in June.
Both countries face the risk of recession. In South Africa, GDP decreased by 0.2 percent from a year earlier as farming and mining output declined while the Nigerian economy shrank by 0.4 percent during low oil prices and the shortage of foreign currency.
South Africa once again #1 economy in Africa… Rankings are so fickle, we shouldn't focus on them #false rivalry pic.twitter.com/QmGufXbz13
— Lerato Mbele (@mbele_lnb) August 10, 2016
South Africa has become the largest economy in Africa, again – replacing Nigeria https://t.co/c0A8B2QjWI pic.twitter.com/RU2Wz53Wbk
— BBC News Africa (@BBCAfrica) August 11, 2016
South Africa has toppled Nigeria & regained its spot as the no.1 economy in Africa, due to the current exchange rate pic.twitter.com/T7EqeeXR9N
— Maps Maponyane (@MapsMaponyane) August 10, 2016
Meanwhile, the rand was trading at R13.28 against the US dollar on the afternoon of 11 August.
