Market News
South African economy 5% bigger after rebasing, moving further ahead of Nigeria - REUTERS
Summary
South Africa’s nominal GDP for 2025 revised upwards to 8.04 trillion rand, from 7.64 trillion rand.
The revised estimate puts the economy at approximately $483 billion, ahead of Nigeria’s $328 billion.
Rebasing incorporates previously undercounted activities, including self-generated electricity, mining and e-hailing services.
Economists say the revisions could improve South Africa’s debt-to-GDP ratio.
JOHANNESBURG (Reuters) — South Africa’s economy is estimated to be about 5% larger than previously reported following a benchmarking and rebasing exercise, the country’s statistics agency said on Thursday, widening its lead over Nigeria as Sub-Saharan Africa’s largest economy.
Statistics South Africa said nominal gross domestic product (GDP) for 2025 was now estimated at 8.04 trillion rand (approximately $483 billion), up from 7.64 trillion rand.
Statistics agencies worldwide periodically rebase and benchmark GDP estimates to reflect changes in economic activity and the structure of their economies.
Nigeria, Sub-Saharan Africa’s second-largest economy, recorded nominal GDP of 441.5 trillion naira, equivalent to about $328 billion, last year.
Nigeria previously had a larger economy in dollar terms, but successive devaluations of the naira allowed South Africa to overtake it.
South Africa’s latest rebasing exercise changed the base year used for GDP calculations to 2022 from 2015. It also incorporated previously unobserved economic activities, including self-generated electricity, illicit and illegal mining, manufacturing activity and e-hailing services.
All 10 sectors tracked by the statistics agency recorded higher output under the revised estimates, with mining, finance and trade registering the largest increases.
Johann Els, chief economist at financial services firm PSG, said the upward revisions would improve the appearance of South Africa’s public debt indicators, particularly its closely watched debt-to-GDP ratio, which the government is seeking to reduce.
Exchange rates:
$1 = 16.6354 South African rand
$1 = 1,347.1700 Nigerian naira
