Nigeria’s Economy Will Drop To Fourth largest In Africa - IMF Forecasts

The International Monetary Fund forecasts indicated that Nigeria’s economy, which ranked as Africa’s largest in 2022, is set to slip to fourth place this year after a series of currency devaluations.

As reported by Bloomberg, the IMF’s World Economic Outlook showed the country’s gross domestic product at $253 billion based on current prices this year, behind North African powerhouses Algeria at $267 billion, Egypt at $348 billion, and South Africa at $373 billion.

In the report, South Africa will remain the continent’s largest economy until Egypt reclaims the mantle in 2027. Nigeria however is expected to remain in fourth place for years to come, the data released this week shows.

Since President Bola Tinubu announced significant policy reforms including the end of the subsidy regime and the devaluation of the Naira, Nigeria has been battling economic challenges, despite a recent rebound, the currency is still 50% weaker against the greenback than it was before taking office after two currency devaluations.