The African economy, which includes 54 countries, is expected to be worth $2.7 trillion in nominal terms in 2021, up $296 billion from 2020, according to IMF data. This is $246 billion less than the GDP of France, the world’s seventh largest economy. In nominal terms, Africa accounts for 2.84 percent of global GDP. After Oceania, Africa is the world’s second-smallest continental economy. It is the third smallest continental economy, behind Oceania and South America, accounting for 4.97 percent of global wealth, according to ppp methodologies.
Northern Africa has the continent’s largest GDP ($792 billion), followed by Western Africa ($777 billion). Together, these two regions account for nearly 58 percent of Africa’s economy. Southern Africa accounts for 16.79 percent of African GDP, Eastern Africa for 16.44 percent, and Middle Africa for 8.04 percent.
According to the United Nations, Africa’s contribution of the global economy peaked at 4.93 percent in 1980 and peaked at 1.88 percent in 1995. The African economy has grown from $506 billion in 1970 to $2.6 trillion in 2019, or a 5x increase in constant 2015 prices, which gives a better indication of growth through time.
The greatest increase in African wealth occurred in 2012, when it increased by $157 billion at constant 2015 prices, while the greatest decrease occurred in 2011, when it decreased by $13 billion. In the last four years, the figure has decreased. At current values, the largest increase was $283 billion in 2010, while the largest decrease was $243 billion in 2015. In the last thirteen years, the figure has decreased.
The continents and subregions are grouped according to the United Nations Statistics Division.
Africa accounts for what proportion of global GDP?
NEW HAVEN, Conn. Africa currently has roughly 17 percent of the world’s population but just about 3% of global GDP. These figures demonstrate not only a failure to realize the continent’s developmental potential, but also the enormous opportunities and risks that lie ahead. Africa will remain a source of global instability and extremism as long as it continues to trail economically. However, if it rises, it might become one of the world’s key sources of growth.
What African country has the most powerful economy?
African countries’ GDP in 2021, broken down each country. Nigeria has the greatest gross domestic output in Africa, with a GDP of 514 billion dollars in 2021. Egypt’s GDP was worth 394 billion dollars, making it the continent’s second-highest.
What accounts for Africa’s low GDP?
The apparent persistent character of Africa’s poverty has sparked debate over its causes. The ongoing economic issues are both causes and results of endemic violence and unrest, extensive corruption, and autocratic regimes. Africa’s decolonization was fraught with insecurity, which was exacerbated by Cold War fighting. The Cold War, as well as rising corruption, poor administration, sickness, and dictatorship, have all contributed to Africa’s dismal economy since the mid-twentieth century.
The most crucial elements, according to The Economist, are government corruption, political instability, socialist economics, and protectionist trade policies.
Why is Gabon so prosperous?
Gabon, a country in central Africa, has a wealth of natural resources. It shares borders with Cameroon, Equatorial Guinea, and the Republic of Congo on the Atlantic Ocean. With a population of 2 million people in 2017 and woods covering 85 percent of its land, it is a sparsely inhabited country.
Gabon, however, has one of Africa’s highest urbanization rates, with more than four out of five Gabonese residents living in cities.
Libreville, the country’s capital, and Port Gentil, the country’s economic powerhouse, are home to 59 percent of the population. According to the 2012 Second Demographic and Health Survey, one in every two Gabonese people is under the age of 20, and the fertility rate in urban regions is four children per woman, compared to six in rural areas.
The Gabonese Democratic Party (Parti dmocratique gabonais PDG) is the most powerful political force in the country. Omar Bongo was president for 41 years, from 1968 to 2009, and his son, Ali Bongo Ondimba, was elected president in August 2009, despite the country’s social catastrophe.
The opposition boycotted parliamentary elections in 2011, but returned in December 2013 to run in municipal and departmental elections, as well as the Senate election in December 2014. Nonetheless, the ruling party won all of these elections. Ali Bongo, the current president, was re-elected on August 31, 2016, in disputed elections with a low voter turnout of 59 percent.
In October 2018, legislative and municipal elections were conducted. Despite losing 15 seats, the ruling party retained its two-thirds majority in the National Assembly, capturing 98 of the 143 seats. The elections came after a constitutional court judgement in April 2018 that dissolved parliament (due to election delays) and forced the government’s resignation in May. A caretaker administration implemented measures (which were codified in an updated 2008 Budget Law) to address Gabon’s deteriorating macroeconomic performance and bloated pay bill.
Several soldiers attempted to seize power on January 7, 2019, taking advantage of the President of the Republic’s protracted absence in Morocco for medical treatment. The ringleaders of this attempted coup were apprehended.
A new administration was sworn in in January 2019, and it was restructured by presidential decree on January 30, June 10, and December 2019.
Gabon is a country with a high standard of living. It is Africa’s fifth largest oil producer, with substantial economic growth over the last decade fueled by oil and manganese output. Over the last five years, the oil sector has accounted for 80 percent of exports, 45 percent of GDP, and 60 percent of fiscal revenue on average. The Gabonese administration, however, has opted to diversify its economy as the country’s oil reserves diminish.
Gabon’s fiscal situation deteriorated in 2015, with the government posting its first budget deficit since 1998. Despite the government’s efforts to cut spending and counteract the drop in oil revenues, Gabon’s economy has slowed, with growth forecasted at 0.8 percent in 2018 compared to 0.5 percent in 2017.
This tendency is due to the limited expansion of the secondary and tertiary sectors, which has been hampered by the reduction in government spending. Higher prices for crude oil, manganese, and rubber, three of the country’s exports, led to the primary sector’s expansion. Non-extractive sectors including agribusiness, as well as enhanced transportation and communication networks, could boost growth to 2.9 percent in 2019.
The COVID-19 situation, as well as the further decrease in oil prices, will stymie this anticipated expansion.
A substantial fiscal deficit will result from a sharp reduction in domestic revenue mobilization, exports, and foreign direct investment.
Gabon’s social spending must likewise be increased. According to a 2013 McKinsey report, over 30% of the population is vulnerable, with monthly salaries below the guaranteed minimum wage of CFAF 80,000 (around $150). In 60 percent of the locations, the survey finds, the socioeconomic situation has deteriorated in terms of access to essential social services (health care, drinking water, and electricity).
Gabon committed to improving its social policy as a result of this report by focusing on three pillars:
- Creating integrated social services for the most vulnerable (elders, orphans, and disabled people);
- Increasing access to essential public services and reducing inequality. Despite having one of the highest net primary enrollment rates in Africa (96.4%), Gabonese education has a low completion rate (37.2 percent ).
Another issue Gabon must solve is the shortcomings of its national statistical system, which lacks credible data on poverty and income distribution, with the most recent data dating back to 2010. The consumer price index is still calculated using data from a 2003 survey of household consumption.
What African country has the lowest GDP?
Burundi is the poorest country not only in Africa, but also in the world, according to per capita GDP and GNI statistics from 2020. Somalia, Africa’s second poorest country, has the same distinction. In fact, much of the list follows this trend. With the exception of Afghanistan, an Asian country with a GNI per capita of $500, which would put it at #6 on the second list, Africa’s ten poorest countries are statistically the world’s ten poorest. To be honest, there is one major caveat to this ranking: It’s likely that more non-African countries, such as North Korea, Syria, and/or Yemen, would make the bottom ten if they disclosed their GDP/GNI figures openly, but they usually don’t. African countries, on the other hand, would benefit.
Which African country is the wealthiest?
Egypt is the richest country in Africa in terms of total GDP (PPP INT$) for 2021. Egypt is Africa’s third-most populous country, with 104 million inhabitants. Egypt’s economy is a diverse one, with tourism, agriculture, and fossil fuels dominating, as well as a burgeoning information and communications technology industry.
Nigeria is Africa’s most populous country, with 211 million people contributing to its GDPnearly double the population of Egypt. Nigeria is a diverse economy with a lower-middle-income concentrate on petroleum and (to a lesser extent) agriculture. It’s also a developing market with burgeoning financial, service, communications, and technology industries.
Why is Africa the world’s richest continent?
Each of the world’s seven continents has a unique set of natural resources. Natural resources such as oil, copper, diamonds, bauxite, lithium, gold, hardwood forests, and tropical fruits are abundant throughout Africa. The African continent is home to 30% of the world’s natural resources, according to estimates. Furthermore, Africa holds the world’s largest precious metal deposits. Despite its abundance of natural resources, Africa continues to lag behind in development due to corruption and mismanagement of resources.
Why is Africa’s economy rising at such a rapid pace?
Africa’s economy is expected to recover at a robust rate of 3.8 percent in 2021, following its worst recession in half a century in 2020, thanks to increased global demand, unexplored market potential, a rebound in commodity prices, and a rise in oil prices.
What African country is the safest?
Mauritius is the safest country in Africa, with a ranking of 24 on the Global Peace Index. Mauritius is a cosmopolitan island nation that is safe and welcoming to families. Mauritius has an extremely low overall crime rate, and the crime that does occur is mostly petty theft and non-violent. The US Department of State has issued a Level 1 travel alert for Mauritius, advising people to take usual precautions.
Botswana
Botswana is Africa’s second safest country. Botswana is a famous tourist destination with attractions such as Chobe National Park, game reserves, and the Tsolido World Heritage Site, which is ranked 30th on the GPI. The US Department of State has issued a Level 1 travel advisory for Botswana.
Malawi
Malawi has a GPI value of 40, making it the safest African country. Malawi is now only one position behind Italy. In Malawi, crime is typically low, with the most serious risks being handbag snatching and petty stealing. Demonstrations and big crowds should be avoided, especially in the Mulanje district. Malawi is safer than other popular tourist locations such as the United Kingdom, Vietnam, Greece, and France, according to the Global Peace Index.
Ghana
On the Global Peace Index, Ghana is the fourth safest country in Africa, ranking 44th. Although Ghana is still deemed safe, it has dropped five places in the Global Peace Index (GPI) from 2018 and 2019. Ghana is seen as a safer travel destination than Argentina, the United Kingdom, South Korea, France, Greece, and other major tourist locations. According to the US Department of State, Ghana has a Level 1 travel advisory and is usually safe to visit.
Zambia
Zambia is ranked 48th in the GPI, along with Timor-Leste. Zambia is the safest country in Africa. Travelers who fly into wilderness areas are unconcerned about their safety. The majority of people encounter higher levels of theft in cities. Zambia’s political situation is also very stable. The US Department of State has issued a Level 1 travel warning for Zambia.
Sierra Leone
Sierra Leone is an East African country with a coastline. The country is ranked 52 on the Global Peace Index, down 18 places from 2018. While Sierra Leone is still generally safe to visit, the United States Department of State has issued a travel warning. In Sierra Leone, violent crime such as assault and armed robbery is frequent, and local police officers lack the training and capacity to adequately respond to such situations.
Tanzania
Tanzania is the safest country in Africa. On the Global Peace Index, Tanzania is rated 54th. The Serengeti Plains, Tanzania’s most popular tourist destination, provide visitors with the ultimate safari experience. Tanzania is subject to a Level 2 travel warning. Avoiding secluded regions, especially at night, and taking taxis that are empty of other passengers and from known taxi firms are recommended.
Madagascar
Madagascar is tied for 55th place on the GPI with South Korea, and is Africa’s eighth safest country. Although Madagascar’s general crime rate is lower than that of most other African countries, it has recently increased, particularly in muggings and robberies, as a result of the political uncertainty, which has resulted in greater unemployment rates. The travel alert for Madagascar is at Level 2, although it is still safer than other major tourist destinations like Vietnam, France, and Greece.
Senegal
Senegal is Africa’s seventh safest country. Senegal is just one position below Vietnam on the Global Peace Index, and is safer than France and Greece. Senegal has a low rate of crime and disease, and its people are regarded for being welcoming to visitors. Senegal is subject to a Level 1 travel warning.
Liberia
Liberia is ranked first among Africa’s 10 safest countries. Liberia is ranked 59th on the GPI, just one spot behind Senegal and one spot ahead of France. The Liberian police are notorious for being corrupt, though not to the extent that they once were. Visitors to Liberia must get a tourist visa as well as a yellow fever vaccination.