South African Economy 5% Bigger after Rebasing, Moving Further Ahead of Nigeria

PRETORIA, Oct 29 (Reuters) – South Africa’s economy is estimated to be ‌about 5% larger than previously reported after a benchmarking and rebasing exercise, its statistics agency said on Thursday, moving it further ahead of ​Nigeria as Sub-Saharan Africa’s biggest economy.

• Statistics South Africa said ​last year’s nominal gross domestic product (GDP) was now estimated ⁠at 8.04 trillion rand (about $483 billion), up from 7.64 trillion ​rand
• Statistics agencies worldwide rebase and benchmark their GDP estimates to take ​into account changes in the composition of the economy and other factors
• Nigeria, Sub-Saharan Africa’s second-largest economy, recorded nominal GDP of 441.5 trillion naira ($328 billion) ​last year
• Nigeria used to have a bigger economy in dollar ​terms, but devaluations of its currency the naira meant South Africa overtook ‌it
• South ⁠Africa’s latest rebasing exercise changed the base year for its GDP calculations to 2022 from 2015
• It also incorporated previously non-observed parts of the economy like self-generation of electricity, illicit and illegal ​mining and manufacturing ​activity and ⁠e-hailing services
• The 10 sectors it tracks were all shown to have higher output, with mining, finance ​and trade registering the largest increases
• Johann Els, chief ​economist ⁠at financial services firm PSG, said the revisions to the size of the economy would make South Africa’s debt numbers look ⁠better, in ​particular its closely-watched debt-to-GDP ratio, which ​the government is trying to bring down
• ($1 = 16.6354 rand)
• ($1 = 1,347.1700 naira)

Source: www.reuters.com