…26th In the World
The International Monetary Fund (IMF) has rated Nigeria as the country with the largest economy in Africa, notwithstanding the debilitating impact of the raging Covid-19 crisis.
However, the ranking was primarily based on the nominal Gross Domestic Product (GDP) of countries without recourse to standard of living/per capita income of citizens. Figures are often sourced from financial and statistical institutions, putting into effect the vagaries of country’s exchange rates.
IMF, in its 2020 World Economic outlook also ranked Nigeria as one of the world’s 26 top economies with an average GDP of $442,976 million.
The outlook ratings put the United States (U.S.) first with $20,807,269; China second with $14,860,775; Japan was ranked third with $4,910,580; Germany came fourth with $3,780,553 while the United Kingdom (UK) came fifth with $2,638,296.
Others are: India $2,592,583; France $2,551,451; Italy $1,848,222 and Canada $1,600,264. Nigeria emerged 26th with $442,976 after Belgium with $503,416.
In a recently released outlook for Nigeria, the Bretton wood institution had stated: “The COVID-19 global pandemic is exacting a heavy toll on the Nigerian economy, which was already experiencing falling per capita income and double-digit inflation, with limited buffers and structural bottlenecks.
“Low oil prices and sharp capital outflows have significantly increased balance of payments (BOP) pressures and, together with the pandemic-related lockdown, have led to a large output contraction and increased unemployment.”
IMF further stated that: “Under current policies, the outlook is challenging. Real GDP is projected to contract by 3¼ per cent in 2020. The recovery is projected to start in 2021, with subdued growth of 1½ per cent and output recovering to its pre-pandemic level only in 2022.
“Following a significant decline in revenue collections – from levels that were already among the lowest in the world – fiscal deficits are projected to remain elevated in the medium term.”