GDP output by region
As a result of the currency devaluation over the last three years, Nigeria’s GDP is now very comparable to that of the Maghreb and South Africa. The high growth in the Maghreb over the last year, combined with low growth in Nigeria and South Africa, leaves the Maghreb poised to become the region with the largest GDP.
Considering the need for high growth both to reward investors and promote socio-economic security, the low rates of growth in Nigeria, South Africa, Southern Africa (ex SA) and Central Africa are worrying. In contrast the high growth in the Maghreb, East Africa, Ghana and Francophone West Africa, will reinforce investor interest in these regions.
It’s interesting to note the comparatively large proportion that Utilities and Government services contributes to GDP in South Africa. This highlights the structural difference between the South Africa economy and other sub-Saharan African countries.
Across all countries, GDP output is far more diversified than exports, which is significantly concentrated in extractives. This domestic diversification served as a mitigating factor against the impact of the commodity cycle in recent years. The impact however remains significant, including a decrease in government revenue, devaluation of currencies and curtailed public and private spending.