When we talk about the strength of a country’s economy, one of the first indicators that comes to mind is gross domestic product (GDP).
This term is frequently mentioned in economic discussions, news reports, policy briefs, etc. But what does GDP mean? And, more specifically, how do African countries’ GDP contributions reflect their impact on the continent’s overall economy?
GDP is the total value of all goods and services produced within a country’s borders during a specific period of time (usually a year). It is a scorecard of a country’s economic health and shows how well a country is using its resources to generate wealth.
There are three common ways to calculate GDP. One is through output, which indicates the total value of the goods and services produced. Depends on income after subsidy subtraction from wages, profits, and taxes. The other is by expenditure, which measures a country’s total spending on goods and services.
Africa’s 54 countries each contribute differently to the continent’s total GDP. Some countries stand out as economic powerhouses, while others are emerging or struggling due to a variety of challenges, including political instability, poor infrastructure, and lack of diversification.
According to Statisense data sourced from the IMF, Egypt will have the largest share of Africa’s GDP in 2023 at 13.63%, followed by South Africa at 13.01% and Nigeria in third place at 12.50%. .
The International Monetary Fund (IMF) shares this positive view, predicting that by 2024, six of the world’s top 10 fastest-growing economies will be in sub-Saharan Africa.
Below are the top 10 African countries and their contribution to Africa’s GDP.
Rank Country Percentage of GDP 1 Egypt 13.63% 2 South Africa 13.01% 3 Nigeria 12.50% 4 Algeria 8.26% 5 Ethiopia 5.65% 6 Morocco 4.85% 7 Sudan 7.75% 8 Kenya 3.68% 9 Angola 2.92% 10 Tanzania 2.72%
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