First Anniversary: Ghana is now richer than Njgeria, Says Bismark Rewane
According to a recent report featured in Punch newspaper, renowned economist Bismark Rewane made some thought-provoking statements about Nigeria’s economic performance and its relative position compared to Ghana. Here are the key points:
1) Nigeria’s Economic Decline:
Nigeria has fallen from the 32nd largest economy in the world to the 42nd position.
In terms of wealth management and accumulation, Nigeria has descended from its 1st ranking to 4th in Africa.
2) Ghana’s Overtaking:
Historically, Nigeria was considered wealthier than Ghana. However, the situation has changed.
Ghana has now overtaken Nigeria in terms of economic strength.
The evidence lies in external reserves and GDP figures.
Metrics and Rankings:
A) Comparing economic metrics among African countries:
B) Nigeria’s GDP growth in the past year was 2.98%.
C) South Africa’s GDP growth was 1.93%.
D) Kenya’s GDP growth stood at 4%.
E)Ghana’s GDP growth reached 3.8%.
Inflation rates:
1) Nigeria: 33%
2) South Africa: 5%
4) Kenya: 5%
5) Ghana: 25%
6) GDP per capita:
7) Nigeria: $1,111
8) South Africa: $6,700
9) Kenya: $2,000
10) Ghana: $2,200
Challenges and Opportunities:
A) Major policy changes were announced in 2023, including the ambitious $1 trillion GDP goal.
B) However, the time lag between policy announcements and their effects remains a challenge.
C) Unintended consequences have led to social unrest.
Nigeria faces a cost of living crisis, and minimum wage negotiations are contentious.
D) Structural challenges include rent-seeking, market structure issues, energy crunch, regulatory bottlenecks, declining labor productivity, and demographic pressures.
In summary, while Nigeria grapples with economic challenges, there is room for improvement. Policy changes, institutional reforms, and strategic borrowing are expected to drive positive growth in the coming years. 🌍📈