A report by the International Monetary Fund, IMF said that there was a new chart of countries with the largest economies in Africa.
Nigeria, which was once the country with the largest economy in Africa, has now moved to the fourth place, where the South African country is at the top of the chart for 2024.
However, the size of the country’s economy does not indicate the quality of life that the majority of people in the country lead.
Many countries continue to face high levels of debt, infrastructure challenges, inflation and economic recession.
The International Credit Fund said that the problems faced by the world economy, including inflation and the prevalence of debt and the problem of uncertain governments, are seriously affecting the economies of African countries.
South Africa is the first in terms of economy followed by Egypt. Oil-rich Algeria is third, while Nigeria, once the elephant of Africa, is now fourth. Ethiopia is the fifth country.
“This new chart shows how the countries have implemented plans to deal with financial challenges,” said Dr. Zainab Usman, director of the Carnegie Endowment for International Peace.
She said that countries such as Nigeria and Egypt are facing setbacks in earning income from manufacturing and exports, high debt and inflation and devaluation of the countries’ currencies.
“These challenges and the plans they implemented to achieve price stability by devaluing their currencies and increasing interest rates by their countries’ banks – reduced the purchasing power of citizens.”
But the situation is not as bad as it seems. The IMF said that Africa will be the fastest growing continent, where the economy will increase by 3.5 percent in 2024, and it will increase by four percent in 2025.
In this way, the IMF defines the size of the country’s economy by the strength of the money they receive called GDP, a standard used for the strength of the economy of countries, companies and the people of the country. .
