GDP comprehensively measures the monetary value of all the products and services that are produced in a country within a given period of time. It gives a relatively accurate estimate of the size and growth rate of a country’s economy, thereby helping investors to make strategic decisions. GDP considers factors such as production, expenditures and income. The figure can sometimes be adjusted to reflect inflation and population growth, thereby providing deeper insights.
GDP is important for several reasons. For one, it gives a relatively accurate estimation of the size and growth rate of a country’s economy, thereby helping decision makers and investors make strategic and well-informed decisions.
Nigeria tops the list at USD514.05 billion; Egypt’s USD394.28 billion places it in the second spot while leading the North Africa region; and South Africa is third with USD329.53 billion. East Africa is represented by Kenya and Ethiopia, sixth and seventh on the continent, respectively. Ethiopia’s GDP at the end of 2021 was USD93.97 billion.
Perhaps more telling would be GDP per capita, where the Seychelles with USD9,670, Mauritius with USD9,640, and Gabon with USD8,600 occupy the top three spots. Some economists and development experts argue that GDP per capita is more important than GDP itself, because it reflects how much of a country’s overall wealth actually trickles down to everyone in the country. EBR
10th Year • May 2022 • No. 107