SOUTH AFRICA IN RECESSION AS NIGERIA IS RANKED AFRICA’S LARGEST ECONOMY
SOUTH AFRICA IN RECESSION AS NIGERIA IS RANKED AFRICA'S LARGEST ECONOMY
South Africa entered it's second recession in two years in the final quarters of last year as agriculture, transport and construction, contracted data showed on Tuesday.
Statistics South Africa said the economy shrank 1.4% in the fourth quarter following a revised 0.8% contraction in the third quarter.
Economists polled by Reuters had predicted a contraction of 0.1% in quarter_on_quarter and seasonally adjusted terms.
"The economy is in recession again that is, two consecutive orders of contraction, after being in recession in the first quarters of 2018," Joe de Beer, Stats SA's deputy director general for economic statistics told reporters.
On a quarter _on _quarter basis, agriculture declined 7.6%, transport 7.2%, construction 5.9%, electricity 4% and retail 3.8%, the data showed.
GDP overall shrank 0.5% year_on_year in the fourth quarter after expanding 0.1 the quarter before. The economy expanded 0.2% in 2019 calendar year compared to 0.8 in 2018.
South Africa has struggled to emerge from an economic slump in the two years since Cyril Ramaphosa became president promising sweeping reforms.
The treasury has cut 2020 economic growth forecast to 0.9%.
Due to this recession which has caught up with Africa, Nigeria tops South Africa as the continents(Africa) largest economy.
It's re_emergent manufacturing sector became the largest on the continent in 2013 and it produces a large proportion of goods and services for the West African subcontinent.
In addition, the debt_to_GDP ratio is 16.075% as of 2019.
Nigeria GDP at purchasing power parity (PPP) has alomosy trippled from $170 billion 2000 to $451 billion in 2012 although estimates of the size of the informal sector (not included in the official figure) put the actual numbers close to $630 billion.
Correspondingly, the GDP per capital doubled from $1400 per person in 2000 to an estimated $2,800 per person in 2012 (again, with the inclusion of the informal sector, it is estimated that GDP per capita hovers around $3,900 per person).(Population increased from 120 million in 2000 to 160 million in 2010). These figures were to be revised upwards by as much as 80% when metrics were to be recalculated subsequent to the rebasing of it's economy in April 2014.
Although oil revenues contribute 2/3 of state revenues, oil only contributes about 9% to the GDP. Nigeria produces only about 2.7% of the world's oil supply(in comparison, Saudi Arabia produces 12.9%, Russia produces 12.7% and USA produces 8.9%). Although the petroleum sector is important as government revenue still heavily relies on this sector, it remains a small part of the country's overall economy.
The largely subsistence agricultural sector has not kept up with rapid population growth and Nigeria, once a large net food exporter, now imports some of it's food products, though mechanization has led to a resurgence in manufacturing and exporting of food products, and move towards food sufficiency. In 2006, Nigeria came to an agreement with the Paris Club to buy back the bulk of it's debts owed from them for a cash payment of roughly US$12 billion.
According to a Citigroup report published in February 2011. Nigeria will have the highest average GDP growth in the world between 2010 and 2050. Nigeria is one of two countries from Africa among 11 Global Growth Generators countries.
South Africa entered it's second recession in two years in the final quarters of last year as agriculture, transport and construction, contracted data showed on Tuesday.
Statistics South Africa said the economy shrank 1.4% in the fourth quarter following a revised 0.8% contraction in the third quarter.
Economists polled by Reuters had predicted a contraction of 0.1% in quarter_on_quarter and seasonally adjusted terms.
"The economy is in recession again that is, two consecutive orders of contraction, after being in recession in the first quarters of 2018," Joe de Beer, Stats SA's deputy director general for economic statistics told reporters.
On a quarter _on _quarter basis, agriculture declined 7.6%, transport 7.2%, construction 5.9%, electricity 4% and retail 3.8%, the data showed.
GDP overall shrank 0.5% year_on_year in the fourth quarter after expanding 0.1 the quarter before. The economy expanded 0.2% in 2019 calendar year compared to 0.8 in 2018.
South Africa has struggled to emerge from an economic slump in the two years since Cyril Ramaphosa became president promising sweeping reforms.
The treasury has cut 2020 economic growth forecast to 0.9%.
Due to this recession which has caught up with Africa, Nigeria tops South Africa as the continents(Africa) largest economy.
It's re_emergent manufacturing sector became the largest on the continent in 2013 and it produces a large proportion of goods and services for the West African subcontinent.
In addition, the debt_to_GDP ratio is 16.075% as of 2019.
Nigeria GDP at purchasing power parity (PPP) has alomosy trippled from $170 billion 2000 to $451 billion in 2012 although estimates of the size of the informal sector (not included in the official figure) put the actual numbers close to $630 billion.
Correspondingly, the GDP per capital doubled from $1400 per person in 2000 to an estimated $2,800 per person in 2012 (again, with the inclusion of the informal sector, it is estimated that GDP per capita hovers around $3,900 per person).(Population increased from 120 million in 2000 to 160 million in 2010). These figures were to be revised upwards by as much as 80% when metrics were to be recalculated subsequent to the rebasing of it's economy in April 2014.
Although oil revenues contribute 2/3 of state revenues, oil only contributes about 9% to the GDP. Nigeria produces only about 2.7% of the world's oil supply(in comparison, Saudi Arabia produces 12.9%, Russia produces 12.7% and USA produces 8.9%). Although the petroleum sector is important as government revenue still heavily relies on this sector, it remains a small part of the country's overall economy.
The largely subsistence agricultural sector has not kept up with rapid population growth and Nigeria, once a large net food exporter, now imports some of it's food products, though mechanization has led to a resurgence in manufacturing and exporting of food products, and move towards food sufficiency. In 2006, Nigeria came to an agreement with the Paris Club to buy back the bulk of it's debts owed from them for a cash payment of roughly US$12 billion.
According to a Citigroup report published in February 2011. Nigeria will have the highest average GDP growth in the world between 2010 and 2050. Nigeria is one of two countries from Africa among 11 Global Growth Generators countries.
Now I think President Buhari's effort is paying offf
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