IMF Report: South Africa Emerges as Africa’s Leading Economy in 2024
In a shift of economic dynamics, South Africa is poised to take the lead in Africa’s economy for 2024, according to the latest economic projections from the International Monetary Fund (IMF) as of April 2024.
Egypt, which held the top position in 2023, is expected to slip to second place this year, while Nigeria is projected to move from second to fourth position.
Algeria is anticipated to ascend to the third spot on the economic podium, primarily fueled by the rise in hydrocarbon prices.
The IMF forecasts Nigeria’s gross domestic product (GDP) to reach USD 253 billion, with Algeria’s GDP expected to be USD 267 billion and Egypt’s at USD 348 billion. In comparison, South Africa’s GDP is projected to stand at USD 373 billion.
According to the IMF’s predictions, South Africa, as the most industrialized nation on the continent, is likely to maintain its position as the leading economic power until Egypt reclaims the top spot in 2027.
Meanwhile, Nigeria, which held the top position until 2022, is expected to remain in fourth place until 2028.
Both Nigeria and Egypt have experienced economic challenges, including high inflation and significant currency devaluations in recent months, leading to a deterioration in their economic situations.
In contrast, the value of the South African rand has remained relatively stable against the dollar, experiencing only a 4% depreciation since the beginning of the current year.
South Africa’s economic resilience and stability in currency valuation position it as a frontrunner in driving the continent’s economic growth trajectory for the foreseeable future.
