Gross Domestic Product in every country is measured by the ultimate goods and services production during a certain period. As such, it also measures the country’s income earned from that production
While GDP is the single most important indicator to capture economic activity, it falls short of providing a suitable measure of people’s material well being for which alternative indicators may be more appropriate.
Some countries may have citizens that are on average wealthy. These countries could appear in this list as having a small GDP. This would be because the country listed has a small population, and therefore small total economy; the GDP is calculated as the population times market value of the goods and services produced per person in the country.
Comparisons of national wealth are also frequently made on the basis of Purchasing Power Parity (PPP), to adjust for differences in the cost of living in different countries. PPP largely removes the exchange rate problem, but has its own drawbacks, it does not reflect the value of economic output in international trade, and it also requires more estimation than nominal GDP. On the whole, PPP per capita figures are more narrowly spread than nominal GDP per capita figures.
In years, some countries like Nigeria, South Africa and Egypt have seen a hike in their Gross Domestic Product of their economy,pointing to the fact that these countries have contributed immensely in lifting the Africans’ economy in the diaspora.
The first amongst the top10 African countries with the Highest GDP is Nigeria.
Nigeria with Gross Domestic Product of $446.543 billion leads Africa with the Highest GDP growth in it economy.Although oil revenues contributed 2/3 of state revenues, oil only contributes about 9% to the GDP. Nigeria produces only about 2.7%(percent) of the world’s Oil supply . Although the petroleum sector is important, as government revenues still heavily rely on this sector, it remains a small part of the country’s overall economy.
The largely subsistence agricultural sector has not kept up with rapid population growth, and Nigeria, once a large net exporter of food, now imports some of its food products, though mechanization has led to a resurgence in manufacturing and exporting of food products, and the move towards food sufficiency.In 2006, Nigeria came to an agreement with the Paris Club to buy back the bulk of its debts owed from them for a cash payment of roughly US$12 billion.
The economy of Nigeria is a middle-income, mixed economy and emerging market , with expanding manufacturing, financial, service, communications, technology and entertainment sectors.It is ranked as the 27th largest economy in the world in terms of nominal GDP , and the 24th largest in terms of purchasing power parity.Nigeria has the largest economy in Africa; its re-emergent manufacturing sector became the largest on the continent in 2013, and it produces a large proportion of goods and services for the West African subcontinent.
The second African country with the Highest GDP of $358.839
South Africa is the most developed country in Africa and was the largest until 2014, when it was overtaken by Nigeria. The largest sector of the economy is services which accounts for around 73 percent of GDP. Within services, the most important are finance, real estate and business services (21.6 percent); government services (17 percent); wholesale, retail and motor trade, catering and accommodation (15 percent); and transport, storage and communication (9.3 percent). Manufacturing accounts for 13.9 percent; mining and quarrying for around 8.3 percent and agriculture for only 2.6 percent.
South Africa’s economy grew by an annualized 4.6% in the first quarter of 2021, following a downwardly revised 5.8% advance in the October-December period and easily beating market expectations of a 2.5% rise. Eight out of ten industries reported positive growth rates in the first quarter, with mining (18.1%), boosted by the production of platinum group metals, iron ore, gold and chromium; finance (7.4%) and trade (6.2%) making the most significant contributions. Manufacturing also increased 1.6%. Meanwhile, contractions were seen in agriculture (-3.2%), dragged lower by weaker production figures for field crops and animal products; and utilities (-2.6%), due to load shedding and a decline in the supply of water. On the expenditure side, household spending and changes in inventories helped spur growth.
Egypt is the third African country with the Highest GDP of $302.256
Since 2000s, the pace of structural reforms, including fiscal, monetary policies, taxation, privatisation and new business legislations, helped Egypt move towards a more market oriented economy and prompted increased foreign investment. The reforms and policies have strengthened macroeconomic annual growth results. As Egypt’s economy healed, other prominent issues like unemployment and poverty began to decline significantly.
The country benefits from political stability and proximity to Europe, increased exports and enjoys a strong currency. From an investor perspective, Egypt is stable and well-supported by external stakeholders.
The fourth African country with the Highest GDP is Algeria $172.781 billion.
Algerian economy is highly dependent on petroleum and natural gas exports. It is estimated that hydrocarbons account for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings. Algeria has $150 billion in foreign currency reserves and a large stabilization fund. State dominance over the economy, corruption and bureaucracy continue to hamper further development and diversification of the economy.
Morocco is the fifth African country with the Highest GDP of $119,04 billion.
The economy of Morocco is considered a relatively liberal economy governed by the law of supply and demand . Since 1993, Morocco has followed a policy of privatization of certain economic sectors which used to be in the hands of the government .Morocco has become a major player in African economic affairs, and is the 5th largest African economy by GDP (PPP). The World Economic Forum placed Morocco as the 1st most competitive economy in North Africa, in its African Competitiveness Report 2014-2015.
The service sector accounts for just over half of GDP, industry – made up of mining, construction and manufacturing – is an additional quarter. The sectors that recorded the highest growth are the tourism telecoms, and textile sectors. Morocco, however, still depends to an inordinate degree on agriculture, which accounts for around 14% of GDP but employs 40–45% of the Moroccan Population . With a semi-arid climate, it is difficult to assure good rainfall and Morocco’s GDP varies depending on the weather. Fiscal prudence has allowed for consolidation, with both the budget deficit and debt falling as a percentage of GDP.
Kenya is the sixth African country with the Highest GDP of $99,246 billion
The government of Kenya is generally investment-friendly and has enacted several regulatory reforms to simplify both foreign and local investment, including the creation of an export processing product.An increasingly significant portion of Kenya’s foreign financial inflows are remittances by non-resident Kenyans who work in the US, Middle East, Europe and Asia.
As of September 2018, economic prospects were positive with above 6% GDP growth expected,largely because of expansions in the telecommunications, transport and construction sectors, and a recovery in agriculture. These improvements are supported by a large pool of highly educated professional workers. There is a high level of IT literacy and innovation, especially among young Kenyans.
Angola is the seventh African country with the Highest GDP of $91,527 billion
Despite its abundant natural resources, output per capita is among the world’s lowest. Subsistence agriculture provides the main livelihood for 85% of the population. Oil production and the supporting activities are vital to the economy, contributing about 45% to GDP and 90% of exports. Growth is almost entirely driven by rising oil production which surpassed 1.4 million barrels per day (220×103 m3/d) in late-2005 and which is expected to grow to 2 million barrels per day (320×103 m3/d) by 2007. Control of the oil industry is consolidated in Sonangol Group, a conglomerate owned by the Angolan government. With revenues booming from oil exports, the government has started to implement ambitious development programs to build roads and other basic infrastructure for the nation
The eighth African country with the Highest GDP of $91,166 billion
Ethiopia has one of the fastest-growing economies in the world and is Africa’s second most populous country.Many properties owned by the government during the previous regime have now been privatized and are in the process of privatization. However, certain sectors such as telecommunications, financial and insurance services, air and land transportation services, and retail, are considered as strategic sectors and are expected to remain under state control for the foreseeable future. Almost 50% of Ethiopia’s population is under the age of 18, and even though education enrollment at primary and tertiary level has increased significantly, job creation has not caught up with the increased output from educational institutes. The country must create hundreds of thousands of jobs every year just to keep up with population growth
The Ninth African country with the Highest GDP of $67,077 billion
The economy of Ghana has a diverse and rich resource base, including the manufacturing and exportation of digital technology goods, automotive and ship construction and exportation, and the exportation of diverse and rich resources such as hydrocarbons and industrial mining. These have given Ghana one of the highest GDP in West Africa .Owing to a GDP rebasement, in 2011 Ghana became the fastest-growing economy in the world.
The tenth African country with the Highest GDP of $62,224
Reflecting strong income growth over the past decade, on July 1, 2020 the World Bank announced that Tanzania’s gross national income (GNI) per capita increased from $1,020 in 2018 to $1,080 in 2019, exceeding the threshold for lower-middle income status. The country’s broad vision of its development goals as a middle-income country in 2025 are set out in the Tanzania Development Vision 2025, characterized by high-quality livelihoods, peace, stability, and unity good governance, a well-educated and learning society, and a competitive economy capable of sustainable growth and shared benefits. Increased GNI per capita is impressive but not enough to reach these goals. Investing in both human development and physical capital is key to achieving these broad goals and improving the quality of life for all Tanzanians.
Tanzania has fared relatively well compared to its regional peers, but economic growth has slowed significantly. The real gross domestic product (GDP) growth rate fell from 5.8% in 2019 to an estimated 2.0% in 2020, and per capita growth turned negative for the first time in more than 25 years.
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