GDP: Nigeria More than 6x Bigger than Ghana
Accounting for about 20% of the Sub-Saharan African economic bloc, Nigeria is more than six times Ghana’s gross domestic product, according to data. But Ghana economy appears stronger in per capital income term.
In the fiscal year 2020, Nigeria’s nominal GDP berthed at $432.9 billion, SAMTL stated in a macroeconomic outlook while Ghana did $68.55 billion amidst the pandemic outbreak that tested fiscal policies muscles of leading African countries.
While the pandemic revealed weaknesses in African economic policies, leadership and ability to withstand pressure, some countries adjusted quickly though not without bilateral and multilateral lenders.
But Ghana overstretched more than Nigeria to the extent that the gold coast country was strained from accessing the Eurobond market. In terms of debt to GDP, Nigeria remains strong and sturdy when compared to Ghana with about 80% of the entire economy mortgaged to local and foreign creditors.
Nigeria still has leeway, especially with rising global oil prices. Though, the country is bedevilled with low investment in oil, resulting in weaker than expected production volume.
According to SAMTL research note, Nigeria accounts for 19.93% of the Sub-Saharan African economic bloc GDP while Ghana was just around 3.6%. In the second quarter of 2021, Nigeria’s balance sheet inched higher more than 5% on economic recovery driven policies.
In the same period, Ghana economy expanded by 3.90%. Surprisingly, Kenya’s GDP saw a meteoric growth of more than 10%. Amidst population that continues to eclipse economic growth, Nigeria’s per capita income trends behind South Africa and Ghana but ahead of Kenya.
In 2020, per capita income in Nigeria was $2,100, South Africa recorded $5,090 while Ghana closed the year at $2,358 at the time when Kenya recorded $1,838.
Nigeria’s inflation rate appears higher than South Africa, Ghana and Kenya as of November 2021, driven by supply chain disruption across the globe. Read: Ghana: Market Conditions Stop Eurobond Plan, Local Bond Yields Peak
Relatively, South Africa headline inflation rate was the lowest, followed by Kenya while Nigeria and Ghana were on double-digit rates despite single Central Bank inflation targeting.
Data shows that unemployment pressure worsen in South Africa, followed closely by Nigeria and Kenya while joblessness pressure was minimal for Ghana in the period.
In terms of population, Nigeria is bigger than South Africa, Ghana and Kenya combine in 2020 but the country has been unable to create sufficient jobs for citizens to enhance productivity like Ghana with an unemployment rate of 4.5% as of the fourth quarter of 2020, Kenya 6.6% as of first quarter of 2021.
Both South Africa and Nigeria unemployment rates kissed the sky at 34.9% and 33.3% respectively as of the third quarter of 2021 for S.A and the fourth quarter of 2020 for Nigeria.
Nigeria’s population size was estimated at 206 million in 2020, South Africa 59 million, Ghana 31 million and Kenya 54 million.
In terms of population growth, Nigeria is fast expanding at 2.58% per annum, Ghana and Kenya 2.14% and 2.25% while South Africa is the slowest among these countries at 1.28%.
South Africa has a very deep stock market as a percentage of its GDP size than Nigeria, Ghana and Kenya at 387.7%, Nigeria 12.15%, Ghana 15.1% and Kenya 21.64%. #GDP: Nigeria More than 6x Bigger than Ghana
