South Africa Economy 5% Larger After GDP Rebasing

Statistics South Africa announced on Thursday that the national economy is approximately 5% larger than previously reported. The agency updated the nominal gross domestic product for last year to 8.04 trillion rand, roughly $483 billion, increasing it from the previous estimate of 7.64 trillion rand.

Statistics South Africa achieved this revision through a benchmarking and rebasing exercise that shifted the calculation base year from 2015 to 2022. The new figures incorporate previously unobserved activities, including e-hailing services, the self-generation of electricity, and illicit manufacturing and mining. All ten tracked sectors showed higher output, with the most significant increases occurring in mining, finance, and trade.

The adjustment widens the economic gap between South Africa and Nigeria, the region's second-largest economy, which recorded a nominal GDP of 441.5 trillion naira ($328 billion) last year. Analysts indicate that the larger GDP estimate will improve the country's debt-to-GDP ratio, a primary metric the government is attempting to reduce.