The African Development Bank Group has recently released its findings on purchasing power parities (PPP) for Africa, based on the International Comparison Program’s 2021 results. This program helps economies compare their GDP internationally, considering price level differences. The Bank funded this initiative in Africa through its Multinational Statistical Capacity Building Program.
Africa accounts for 5.4% of the world’s GDP in PPP terms and 18.5% of the global population. Egypt has surpassed Nigeria as the continent’s largest economy, with an expansion of 28.51% from 2017. In 2021, 52 African countries participated in the program, with notable economies including South Africa, Nigeria, and Algeria.
The report also highlights GDP per capita in African nations, with Seychelles, Mauritius, and Gabon ranking as the top three richest countries. Zimbabwe has the highest price levels, while Sudan and Ethiopia have the lowest. Nigeria leads in investment expenditures with a 21.3% share, followed by Egypt and Algeria.
Overall, the African economy produced goods and services worth $8.2 trillion in 2021, with significant contributions from countries like Egypt, Nigeria, South Africa, and Algeria. These findings will help analyze poverty levels, make investment decisions, and assess economic growth across the continent.
