Sa Vs Nigerian Gdp

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Nigeria vs S.A GDP

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Adapted from BusinessTech.co.za, 2014 Adapted from the Economist, 2014

Nigeria’s GDP is worth 500 billion USD after the recent calculations. The graph adapted from The Economist shows that it is approximately 150 billion USD more than South Africa. The percentage change in GDP for Nigeria is overwhelmingly greater than South Africa.

When the statistics show that Nigeria’s GDP and economy is greater than South Africa’s GDP, it becomes a worrying factor for all South Africans concerned. It shows that there are some instabilities and flaws in this country that need to be eradicated. Looking at the continent as a whole, it is good that Nigeria surpassed South Africa as the leading economy in Africa as it shows that African countries have the ability to grow and to be successful. However, for South Africa and South African people concerned, it is not important but it is unsettling. There are factors in the South African economy that need to be looked at in order to face the economic issues the country has.

GDP is used for comparing welfare and living standards over time. It is also important for assessing the current economic situations and then forecasting the economic well-being. GDP in some respects is not a perfect measure of welfare in general. There are factors that the country needs to consider when calculating GDP. Household production is a vital piece of information that needs to be considered when measuring GDP. Leisure time should also be considered. GDP also leaves out crucial economic costs like Pollution, inequalities and work-life balances (Aeon Magazine, 2014).

GDP will be better and more accurate once all of those factors mentioned are taken into account. The country’s economic health is very crucial and it needs to be conserved. GDP gives us an idea of what needs to be done in order to preserve the country’s welfare and well-being. It is a very good initiative for many countries concerned and it might benefit the world as a whole.

LIST OF REFERENCES

CALLEN, T. 2014. Gross Domestic Product: An Economy’s All. IMF. [Online]. Available: gghttp://www.imf.org/external/pubs/ft/fandd/basics/gdp.htm (Accessed 4 August 2014)

INVESTOPEDIA, 2014. Gross Domestic Product – GDP. [Online]. Available: gghttp://www.investopedia.com/terms/g/gdp.asp (Accessed 3 August 2014)

MAGNOWSKI, D. 2014. Nigerian Economy overtakes South Africa on rebased GDP. ggBloomberg. [Online]. Available: http://www.bloomberg.com/news/2014-04-06/nigerian-ggeconomy-overtakes-south-africa-s-on-rebased-gdp.html (Accessed 4 August 2014)

PARKIN, M, ANTROBUS, G, BAUR, P, BRUCE-BRAND, J, KOHLER, M, NEETHLING, L, GGRHODES, B, SAAYMAN, A, SCHOER, V, SCHOLTZ, D, THOMPSON, K, VAN der MERWE, J, GG2013. Economics: Global and Southern African Perspectives. Cape Town: Pearson.

PARKIN, M, ANTROBUS, G, BAUR, P, BRUCE-BRAND, J, KOHLER, M, NEETHLING, L, GGRHODES, B, SAAYMAN, A, SCHÖER, V, SCHOLTZ, D, THOMPSON, K, Van der Merwe, J, GG2010. Economics: Global and Southern African Perspectives. Cape Town: Pearson.

THE ECONOMIST, 2014. Nigeria’s GDP: Step Change. [Online]. Available: gghttp://www.economist.com/news/finance-and-economics/21600734-revised-figures-show-ggnigeria-africas-largest-economy-step-change (Accessed 4 August 2014)

THISDAYLIVE, 2014. GDP Rebasing. ThisDayLive. [Online]. Available: gghttp://www.thisdaylive.com/articles/gdp-rebasing/175578/ (Accessed 4 August 2014)