Nigeria will today be declared
Africa’s largest economy as a result of the rebasing of its economy.
Sources close to the Ministry
of Finance and the National Bureau of Statistics said the minister of finance
and coordinating minister for the economy, Dr Ngozi Okonji-Iweala, will today
announce Nigeria’s new rebased gross domestic product (GDP) of about $432
billion compared to that of South Africa which stood at $370 billion at the end
of 2013.
It was learnt that a list of
activities captured under the new standards increased from 33 to 46 because of
the addition of sectors such as Nollywood, telecommunications and information
services, publishing, motion pictures, sound recording and music production as
well as arts, entertainment and recreation, financial institutions, insurance
and real sectors.
A nominal GDP is the sum value
of all produced goods and services at current prices while real GDP is the sum
of all produced goods and services at constant prices and is useful for showing
how an economy changes in size and how average living standards change over
time.
Re-basing the GDP of a country
means that statistics give the most up-to-date picture of an economy possible.
Nigeria’s old GDP base year is 1990.
NBS said recently that the new
base year for arriving at the new rebased nominal GDP is 2010. It said it would
be based on the latest system of national accounts 2008 from 1993 previously as
well as the international standard of industrial classifications: 4.0 from the
previous 3.1.
Leadership.
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