Does it matter that SA is back at the top of the GDP table in Africa?
SOUTH Africa has toppled Nigeria and reclaimed its status as the largest economy in Africa. This comes two years after Nigeria rebased its gross domestic product (GDP) calculation and advanced to the top spot.SA was also temporarily relegated to third position early in 2016 after Egypt climbed to claim the second spot. The Conversation Africa’s business and economy editor, Sibonelo Radebe, asked the University of the Witwatersrand’s Prof Jannie Rossouw to explain what it all means.SIBONELO RADEBE: How is this ranking calculated?JANNIE ROSSOUW: The ranking is made on the basis of the size of the GDP of the three countries in question, namely SA, Egypt and Nigeria. The GDP is a measure of total economic activity in a country in a specific period (for example a year). GDP is measured in the domestic currency of the country, which is the rand in the case of SA, the naira in Nigeria and the Egyptian pound in Egypt’s case.For purposes of international comparison, the GDP values are conver...
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