South Africa comes in at rank 41 with $373.23Bn (IMF ’24 data), and $405.27Bn GDP (UN ’22 data). GDP per capita is $5,831 with the most recent population estimate being around 62 million.
According to the Legatum Prosperity Index, South Africa’s economy is ranked 75th of of 167 countries in the world. By looking at the findings from the World Bank, we can see the areas causing South Africa to be low down on the list compared to other more prosperous nations in terms of their economies.
While the Legatum Prosperity Index looks at several different factors to determine the success of a Country. Most countries compete on the world stage with regards to their GDP.
Gross Domestic Product refers to the total monetary value of goods and services produced within a Country’s borders (Usually measured in US Dollars). GDP is then used as an indicator to determine the health and size of an economy and it’s performance over time.
The World Bank’s most recent GDP Stats for South Africa is for 2023, and totaled $380,699,271. The South African Reserve Bank also has a great resource page with the most Up-to-date data on South Africa’s Economy.
The SARB does a great job at breaking down by production approach for example Agriculture, Mining, Manufacturing etc.
The International Monetary Fund (IMF), which is part of the United Nations, also determines and publishes GDP by Country. The World Population Review is a resource that then ranks countries by their most recent GDP Data.
According to this resource the three largest economies in the world is the United States ($28.78Tn GDP), Followed by China ($18.53Tn GDP) and then Germany ($4.59Tn GDP).
South Africa vs. other African countries in terms of GDP
According to the most recent IMF and UN GDP stats, South Africa currently has first place in terms of being the largest economy in Africa in terms of GDP. $373.23Bn (IMF ’24 data), and $405.27Bn GDP (UN ’22 data)
The second largest economy is Egypt ($347.59Bn GDP) and the third largest African economy is Algeria ($266.78Bn GDP).
What can South Africa do to increase GDP?
GDP comes down to the products and services produced within a country’s borders. So for South Africa to increase it’s GDP and climb up the world rankings, South Africa must have the infrastructure and capabilities to produce more. This will require both domestic and foreign investment.
Another key aspect is technology, top be ahead in terms of production and services, South Africa will need to innovate or at the least make use of the latest technologies available internationally in order to compete.
Finally South Africa needs to ensure cooperative relationships with other countries to ensure beneficial trade can occur and more foreign income can enter the country.
By simply focusing on the above, more work opportunities are created for the population and and other factors which influence the success of the economy are also improved.
While these are not all the ways to improve GDP, these are the primary drivers in today’s world where the key indicator comes down to a nations wealth-building ability and the measure of the wellbeing of the country’s citizens.