International

South Africa Reclaims Position as Africa’s Second-Largest Economy, Edging Out Egypt

South Africa Reclaims Position as Africa’s Second-Largest Economy, Edging Out Egypt

An employee counts money at an exchange office in downtown Cairo Credit: Amr Abdallah Dalsh/ Reuters
An employee counts money at an exchange office in downtown Cairo
Credit: Amr Abdallah Dalsh/ Reuters

South Africa has regained its position as Africa’s second-largest economy after Nigeria, edging out Egypt, Bloomberg reported.

According to Bloomberg, the gap between the economies of South Africa and Nigeria has been closing despite the fact that the former country’s economy has shrunk as its currency has weakened. Nigeria, meanwhile, continues to hold the top spot in terms of the continent’s economies even after its currency, the naira, was devalued by 30 percent.

In May, auditing and advisory firm KPMG announced that Egypt had surpassed South Africa as the continent’s second-largest economy. The firm reached the conclusion by analyzing the latest figures released by the International Monetary Fund (IMF) in its World Economic Outlook report, released in April.

The new IMF statistics had indicated that South Africa’s slowing economic growth, together with the depreciation of its currency, the rand, had led to a decline in the US dollar value of the economy in the period from 2012 to 2015. The country’s currency was also depreciated by as much as 50 percent, which resulted in an average decline of the nominal US dollar value of South Africa’s GDP of almost 7 percent per year between 2012 and 2015.

Although the Egyptian pound has also been devaluing, it has been doing so at a much slower pace than the South African rand, particularly due to the Central Bank of Egypt’s tight control over the pound since 2011, when unrest gripped the country.

The IMF’s numbers had predicted that South Africa’s economy would see a growth rate of only 0.6 percent in 2016 and 1.7 in 2017, and that Egypt’s economy would grow by 3.3 and 4.3 percent in 2016 and 2017, respectively.

However, KPMG’s report had highlighted that there was “significant uncertainty” surrounding the short- and medium-term development for the Egyptian pound.

 

15 Arrested for Setting Fire to Copts’ Homes in Egypt’s Minya
Egypt Blocks UN Condemnation of Military Coup Attempt in Turkey

Subscribe to our newsletter


International

More in International

How Changing the African Narrative Can Change the Region

Nour Taha13 May 2022

Palestinian Al-Jazeera Journalist Shireen Abu Akleh Shot Dead During Israeli Raid

Shereif Barakat11 May 2022

UNRWA’s First Egyptian Digital Fundraising Campaign Gathers Funds for Gaza

Ibrahim Abdou29 April 2022

Egypt’s Sisi Congratulates France’s Macron on Election Victory

Marina Makary25 April 2022

UK Lifts Travel Restrictions to Egypt’s South Sinai and Fayoum

Shereif Barakat18 March 2022

Egypt Flies Out Stranded Ukrainians to Neighbouring Europe for Free

Sara Ahmed7 March 2022

African Union Condemns Racist Treatment of African Refugees from Ukraine

Egyptian Streets3 March 2022

Middle Eastern Media Leaders eSummit to Kick Off March 15

Sara Ahmed2 March 2022