SUCCEEDING ECONOMIES IN THE SUB-SAHARAN AFRICA
For the past years, Africa has been considered one of the continents in the world to be struggling economically then managed to build up being one of the continents with powerful economies until COVID-19 hit. Just when Africa’s economy appeared to be recovering from the COVID-19 pandemic, the Russio-Ukraine war scrapped everything is was recovering with higher commodity prices, higher fuel, food, and headlines of inflation.
But according to International Monetary Fund (IMF)’s recent World Economic Outlook, 5 of the world’s fastest-growing economies are Angola, Ethiopia, Nigeria, Kenya, and South Africa.
This economy could quadruple in size and its growth is expected to be at 3.6% in 2023 and rise to 3.9% in 2024.
1. Angola – as the second largest producer of oil in Africa, Angola reclaim its spot as the third-largest economy in sub-Saharan Africa, thanks to a return to growth linked to higher oil prices. The IMF expects Angola’s GDP to expand by 8.6% this year, reaching $135 billion.
2. Ethiopia – this country is set to replace Kenya as the fourth-largest economy in sub-Saharan Africa, according to the IMF. This is due to the easing of armed conflict in the nation and the continuation of ambitious economic reform efforts aimed at opening up one of Africa’s fastest-growing but most closed economies. The IMF predicts Ethiopia’s GDP will reach $126.2 billion this year, expanding by 13.5%.
3. Nigeria – as the largest economy on the continent, Nigeria maintains its top spot in sub-Saharan Africa’s economic rankings. The IMF predicts that Nigeria’s GDP will hit $574 billion this year. This is an impressive figure, and Nigeria’s economy will likely continue to grow in the coming years.
4. South Africa – South Africa will retain its position as the second-largest economy in sub-Saharan Africa, with a GDP of $422 billion this year. This is an impressive figure, and South Africa’s economy will likely continue to grow in the coming years.
5. Kenya – Kenya’s GDP is projected to record a slower growth of 2.4% this year due to the aftershocks of the Covid-19 pandemic, drought, election jitters, and disruption of global supply chains. The IMF predicts that Kenya’s GDP will reach $117.6 billion this year, behind Angola and Ethiopia.