Johannesburg - South Africa’s economy regained the
position of Africa’s largest in dollar terms more than
two years after losing it to Nigeria as the value of the
nations’ currencies moved in opposite directions.
Based on gross domestic product at the end of 2015
published by the International Monetary Fund, the size
of South Africa’s economy is $301bn at the rand’s
current exchange rate, while Nigeria’s GDP is $296bn.
That’s after the rand gained more than 16% against the
dollar since the start of 2016, and Nigeria’s naira lost
more than a third of its value after the central bank
bank removed a currency peg in June.
Both nations face the risk of a recession after
contracting in the first quarter of the year. The Nigerian
economy shrank by 0.4% in the three months through
March from a year earlier amid low oil prices and output
and shortage of foreign currency. That curbed imports,
including fuel. In South Africa, GDP contracted by 0.2%
from a year earlier as farming and mining output
declined.
“More than the growth outlook, in the short term the
ranking of these economies is likely to be determined
by exchange rate movements,” Alan Cameron, an
economist at Exotix Partners, said in emailed responses
to questions on August 2. Although Nigeria is unlikely
to be unseated as Africa’s largest economy in the long
run, “the momentum that took it there in the first place
is now long gone”.
No growth
The South African rand rallied as investors turned to
emerging markets with liquid capital markets to seek
returns after Britain voted to leave the European Union
on June 23, even as the central bank forecast the
economy won’t expand this year and the nation risks
losing its investment-grade credit rating.
The ruling African National Congress’s lowest support
since 1994 in the August 3 local government vote led to
further gains on speculation that it will pressure the
party to introduce economic reforms that will boost
growth and cut unemployment.
In Nigeria, investors didn’t flock to buy naira-based
assets after authorities removed the peg of 197-199
naira per dollar. The Central Bank of Nigeria raised its
benchmark interest rate to a record in July to lure
foreign money, even as the IMF forecast the economy
will contract 1.8% this year.
Nigeria was assessed as the continent’s largest
economy in April 2014 when authorities in the West
African nation overhauled their GDP data for the first
time in two decades.
The recalculation saw the Nigerian economy in 2013
expand by three-quarters to an estimated 80 trillion
naira.
The rand gained 1% to R13.2805/$ at 16:03 in
Johannesburg on Wednesday. The naira weakened 2.7%
to 320 per dollar.



m.fin24.com/fin24/Economy/sa-boots-nigeria-out-as-africas-largest-economy-20160810?isapp=true

Under this dullard I'll only be surprised if I see any good news but bad news is in his blood.

Hausa/Fulanis and yorubas are killing all of us softly in this country.
That combo is always a disaster for Nigeria right from independence.
By the time these folks finish with us heh.....



Pls do anyone know a drug one can take to sleep and wake up in 2019..??