South Africa is once again the biggest economy on the African continent, a position it reclaims from Nigeria, thanks to a surging rand.

Using the gross domestic product at the end of 2015 published by the International Monetary Fund, Bloomberg reported that the size of South Africa’s economy is $301 billion at the rand’s current exchange rate, while Nigeria’s GDP is $296 billion.

Bloomberg noted that the rand has gained more than 16% against the US currency since the start of 2016, while in contrast, Nigeria’s naira has lost more than a third of its value.

In Afternoon trade on Wednesday, the rand firmed by more than a percent against the dollar, to R13.29.

NigeriavsSouthAfrica
The media agency pointed out that both Nigeria and South Africa are facing the risk of recession, having contracted in the first quarter of the year. Nigeria’s economy shrank by 0.4%, while South Africa’s GDP contracted by 0.2%.

Nigeria has suffered amid low oil prices, while South Africa is sensitive to shifts in the commodity cycle.

“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 LLP, told Bloomberg.

He said that 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.”

While the results of the recent municpal elections is feeding positive sentiment back into the markets, the South African Reserve Bank forecasts zero growth for 2016, while unemployment still remains above 26%.

In July, South Africa stepped past Egypt as the continents’ second largest economy in dollar terms, having dropped behind the North African country earlier in the year.

Source: http://businesstech.co.za/news/banking/132926/south-africa-overtakes-nigeria-as-africas-biggest-economy/

oo

Mynd44:
https://www.nairaland.com/3281002/south-africas-economy-regains-rank

Okay, may be u didn't find the graphical chart and source helpful.@mynd44 @seun, I'll mind my business next time. Mbok

Before nko, wait Kenya, even Somalia is coming pass naija. Lol

Lord save the Nigerian economy.

New Cherif, Baba Cassandra, see where your dulapo brain land us so!!!
Stupid old fool!!
Bastard man!

It was inevitable.

This is not news, it is expected.

Nigeria was running in corruption economy.
The economy has been reset.

Blaming Buhari isn't gonna help nigerians. The truth is Buhari has exposed the LIE that you have been living for 2 years. Fake 418ed Gdp by Ngozi and Kale. The truth is coming to bite you now. We have been telling you this since 2014.

[b]South Arica regained its 2nd spot in July after Egypt devalued their currency. Even Egypt is doing the very same ting that Nigeria is doing, capping their Egyptian pound, its 8.88 to the dollar in the official market while in the black market is 12.25 pound. Currently they are going around shutting all the black market traders in a bid to have a pegged pound to be effective. You cannot manufacture the rate of your currency, once you do that, no potential investor will ever set foot in your country. Now Egypt wants help from IMF, and IMF has given them conditions to give them that Loan, one of it is to devalue their currency once again to reflect reality on the ground.

What I am trying to show you is that in reality, Egyptian and Nigerian economies are very small compare to the South African one. Example, lets take Nigeria total GDP of N94trillion and divide it by the black market rate which is currently at N405 to the dollar, N94000/405= $232BN, and take Egyptian pound 2400/12.25 = $196BN and the South African one R4000/13.28 = $301BN. You see South Africa is the largest economy in Africa by far in reality. But if you consider the partially floated Nigerian naira at 94000/320 = $294BN, smaller than that of SA and the Egyptian one will be 2400/8.88 = $270BN.

Therefor:

1. South Africa = $301BN

2. Nigeria = $294BN on official rate and $232BN for black market rate

3. Egypt = $270BN on official rate and $196BN for black market calculated rate

Hopefully it makes sense, but its a simple maths[/b]

When u have an illiterate president what do u expect