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Top 10 richest countries in Africa By GDP 2020 Updated

This list includes countries with the largest economies including Nigeria, Egypt, Angola and others

GDP is the core measure of a country’s economic health, totaling the monetary value of all goods and services produced in a given time period, minus the value of the goods and services used up in production. Businesses large and small rely on GDP for major planning decisions. For investors, GDP is a guide for estimating profit margins and making financial decisions. Economists use it to understand the economy and make forecasts.

Nominal GDP

Nominal economic statistics, also called current-dollar statistics, are not adjusted to account for the price changes from inflation and deflation. The natural rise and fall (mostly rise) of prices is captured by nominal GDP, which tracks the gradual increase of the value of an economy over time. If overall gross domestic product rises 2 percent in a year and inflation runs at 2 percent over the same period, nominal GDP will be +4 percent for that year.

Nominal GDP is the preferred figure for comparing GDP to other variables that also don’t adjust for inflation. For example, debt is always calculated and expressed as a nominal figure, so debt-to-GDP ratios are always based on nominal GDP. Because inflation is baked into nominal GDP figures, it can give an inaccurate view of growth.

source : Bankrate.com


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