Nigeria has successfully maintained its status as Africa’s largest economy, according to data available for the second quarter of 2023.
Research conducted by Nairametrics reveals that the country amassed a total GDP of N215.6 trillion for the year-long period from Q3 2022 to Q2 2023. Converted to U.S. dollars at the latest closing exchange rate of N773/$1, Nigeria’s GDP stands at approximately $278.9 billion.
Trailing closely behind Nigeria is South Africa, which recently unveiled its GDP data for the same period. As per figures released by South Africa’s statistics bureau, the nation’s economy generated a total of ZAR4.6 trillion from Q2 2022 to Q2 2023.
When converted to U.S. dollars using the official exchange rate of ZAR18.98/$1, South Africa’s GDP amounts to roughly $243.4 billion. These numbers unequivocally affirm Nigeria’s position as the continent’s leading economy.
While these figures present a positive outlook for Nigeria, they also draw attention to the currency volatility plaguing both nations in 2023.
Nigeria has witnessed a depreciation of up to 40% in its currency’s value for the current year, based on official exchange rates.
South Africa, in comparison, has seen its currency’s value diminish by approximately 15% over the same timeframe.
Further analysis reveals that the Naira would need to depreciate to around N900/$1 for Nigeria’s GDP to fall below South Africa’s when measured in U.S. dollars.
- It’s worth noting that while the black market rate for the Naira currently hovers above N1000/$1, for the purposes of this analysis, only the official exchange rates have been considered, under the assumption that they are not artificially fixed.
- Another critical aspect to consider is the base year for constant prices used by both countries.
- Nigeria continues to use the year 2010 as its base year for constant prices, while South Africa has updated its base year to 2015.
- This could potentially affect the relative values of both countries’ GDPs, though the current numbers still favour Nigeria.
In terms of GDP growth rates, South Africa reported a real GDP growth of 1.6% for the second quarter of 2023. This lags behind Nigeria, which posted a more robust real GDP growth rate of 2.51% for the same period.
