IMF forecasts South Africa to have Africa’s largest economy in 2024
South Africa, despite continuing supply-side constraints in the power and logistics sectors, is set to reclaim its ranking as Africa’s largest economy, according to the IMF’s World Economic Outlook published in April.
South Africa’s gross domestic product is estimated to reach USD373 billion, while Egypt, which held the top position in 2023, is projected to fall to second with USD348 billion after a series of currency devaluations.
Nigeria, which led the ranking in 2022, is set to slip to fourth place with an estimated GDP of USD253 billion – behind energy-rich Algeria at USD267 billion – due to its high inflation rate, a weakening currency and the effects of recent government economic reforms.
The IMF predicted that Egypt could reclaim the top position by 2027. But it also expects the South African economy to benefit from improvements to its energy supply and plans to tackle logistical bottlenecks.
