Gross Domestic Product (GDP)

Running Head: Economics
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Macroeconomics
Gross Domestic Product (GDP)
4/20/2020

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Contents
Introduction......................................................................................................................................2
Economic Concern with the country Africa....................................................................................2
Gross Domestic Product (GDP) Of Africa......................................................................................2
Relationships between Africa and United States.............................................................................3
The trends with statistical evidence in GDP of Africa....................................................................4
Graphs and/or data tables of the variables of GDP in Africa..........................................................5
What trends do you see in the data sets? Please explain.................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
The report will evaluate the economy of the country Africa by stating the economic concern of
the Gross Domestic Product (GDP). An employee wants to invest in the foreign economy so in
report the research will be done of the economy of Africa that their economic conditions are well
or not to invest in that country. In this report the economic concern of the GDP in relates with the
African country will be stated and their relation with the home country United States will also
state (Jourde, 2016). With the help of the statistical evidence and the data tables the trends
related to the economic concern will be elaborated in this report.
Economic Concern with the country Africa
Africa is the resource rich continent and their economic position is also good in the market.
There were 54 countries in the Africa and there were about 1.3 billion people living in that
country which has been evaluated in the year 2019. Nigeria is the West African country which
has the highest economy by GDP of $376.284bn in the year 2019. South Africa has the second
largest economy of the continent with the GDP of $349.299bn (Jedwab and Storeygard, 2019).
The economy of the Africa is based on the certain factors like agriculture, industry, trade and the
human resources of the continent. The economic growth of the Africa is stabilized in the market
at 3.4% in the year 2019 (Meltzer, 2016). It is expected that economy of Africa will be expected
to rise in the year 2021 as the growth in the economy has been enhanced from the private
consumption to the exports and the investments. But due to the COVID 19, the economy has get
impacted and the growth in the economy has get disrupted.
Gross Domestic Product (GDP) Of Africa
The GDP growth of the country Sub Saharan Africa is increasing from the last few years. In the
year 2018, the GDP of the African country was 4,097.85 US dollar. The GDPO of the country
get enhanced in the year 2019 with 4,195.4 US dollar. As per the statistical of African GDP, the
population in the Africa has increasing with the 16% in the year 2019. The total population in the
country Africa in the year 2019 was 1.307 billion (Oyenuga, 2019). On the basis of the GDP
Nigeria is the richest country with the GDP of $376.284bn in the year 2019.

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The national output of the country Africa has been increased with the increasing GDP. In the
country Africa the income and expenditures are increasing which helps in the economic
development of the country. The investment in the country is increasing as Africa has the higher
GDP which equates to the greater human progress.
Relationships between Africa and United States
Both the countries United Sated and Africa have the diplomatic relationship earlier but currently
they have maintain the bilateral relationship with each other. The economy of United States has
the major relationship with the South Africa as they are linked to each other and also faces the
strain throughout each other. Both the countries have the relation of trade and investment which
has increases the GDP of the country (Pearce, et al., 2018). The trade and investment has been
done in the absolute terms such as agricultural goods, exports trade, etc. the 30 of the GDP in
Africa get enhanced by doing the trade relations with the country US.
Earlier the trade relationship of the US with the sub Saharaian Africa was underdeveloped and
declining in the year 2011. From 2011 to 2015 the growth in the economy due to the trade
between the both countries is only 3.75% (Blamey and Bolton, 2018). In Sub Sahraian Africa the
people are still living in the poverty of 40% so one of the major motives are to improve the
sustainable development goals.
The third relation between both the countries is that AGOA provides exports so their accessing
has been done through the US market so the country provides the preferential access to export
from sub-Saharan Africa preferential. US Africa also has trade and investment relation of not
engaged in the gross violations of the human rights (Meltzer, 2016).
US has the world leading economy which has the GDP of $21,427,100 million in year 2019. The
GDP rate of the country is enhancing and the growth of 2.9% has been seen in the economy. The
GDP of Africa is increasing with the growth of 3.4% (Rodrik,2018).

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The trends with statistical evidence in GDP of Africa
The above diagram is reflecting that GDP of the country Africa is the world average economy
which is fluctuating. In the year 2016, the GDP of the country has declined with the very high
rate but in the next year it has somehow cope with that (Blamey and Bolton, 2018). It has been
projected that in the future the GDP growth of the economy Africa will be increased.

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Source: (United Nations, 2019).
Graphs and/or data tables of the variables of GDP in Africa
Source: (African Global economy, 2020).

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South Africa GDP annual growth rate
Foreign direct investment of the countries in Africa
What trends do you see in the data sets? Please explain
The trends have been that the rate of the GDP growth has been fluctuation in the data sets. In
South Africa the rate of GDP was declining in the years 2015 and 2017 but in the year 2018 it
has rapidly increased due to the increasing in the trade and investment (Lall, 2015). In the quarter
of 2019, the GDP volume of the South Africa has again declined with the high rate. Where the
US is growing in terms of the GDP the South Africa is declining as there trades and investment
are getting affected in the bad manner. The major rend has been seen in the inflation rate and the
interest rate of the Africa economy. Due to the COVID 19 also the economy of Africa has get
affected in the long run (Dixit, et al., 2019).
The trend in the Africa in the data has been majorly seen in the Egypt and Nigeria as both of
their economies are constantly incasing and giving the highest GDP to country Africa. The GDP
of Africa is getting impacted with the two country GDP economy which is South Africa and the
Morocco.

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Source: (African Global economy, 2020).
GDP in volume of different countries
Conclusion
From the above report it is concluded that that the employee can make the investment in the
country Africa as they GDP in the economy is growing but to get the good return is not the
assurance. The economy of Africa is fluctuating and even the country has the higher level of
poverty so to invest in the African economy is taking a risk. The US and South Africa have the
good trading relations but the GDP of South Africa is declining. If the employees wants to invest
then he should invest in the country Nigeria or the Egypt of South Africa as there economy are
growing and will give the benefit to the employees in getting the good returns. Africa is the
resource rich continent and their economic position is also good in the present market but due to
the market fluctuations and COVID 19 the economy is impacted at the negative manner.

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References
African Global economy, (2020). This region will be worth $5.6 trillion within 5 years - but only
if it accelerates its policy reforms. Available at:
https://www.weforum.org/agenda/2020/02/africa-global-growth-economics-worldwide-gdp/
Accessed on: 20 April 2020.
Blamey, L. K., & Bolton, J. J. (2018). The economic value of South African kelp forests and
temperate reefs: past, present and future. Journal of Marine Systems, 188, 172-181.
Dixit, S., Gill, I. S., & Kumar, C. (2019). Are Economic Relations with India Helping Africa?
Trade, Investment and Development in the Middle-Income South.
Jedwab, R., & Storeygard, A. (2019). The average and heterogeneous effects of transportation
investments: Evidence from Sub-Saharan Africa 1960-2010 (No. 2019-8).
Jourde, C. (2016). The Role of the United States in Western Africa: Tying Terrorism to Electoral
Democracy and Strategic Resources. In Hegemony or Empire? (pp. 199-220). Routledge.
Lall, S. (2015). FDI, AGOA and manufactured exports by a landlocked, least developed African
economy: Lesotho. Journal of Development Studies, 41(6), 998-1022.
Meltzer, J. P. (2016). Deepening the United States-Africa trade and investment
relationship. Testimony to the United States International Trade Commission, January, 28.
Available at: https://www.weforum.org/agenda/2020/02/africa-global-growth-economics-
worldwide-gdp// Accessed on: 20 April 2020.
Oyenuga, V. A. (2019). From Grass To Meat And Milk: Situation And Prospects In
Nigeria. Proceedings of the Nigerian Academy of Science, 10(1).
Pearce, A., Sharp, L., Hanly, P., Barchuk, A., Bray, F., de Camargo Cancela, M., ... & Wang, S.
M. (2018). Productivity losses due to premature mortality from cancer in Brazil, Russia, India,
China, and South Africa (BRICS): a population-based comparison. Cancer epidemiology, 53, 27-
34.
Rodrik, D. (2018). An African growth miracle?. Journal of African Economies, 27(1), 10-27.

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United Nations, (2019. World Economic Situation and Prospects 2019. Available at:
https://www.un.org/development/desa/dpad/wp-content/uploads/sites/45/WESP2019_BOOK-
CH3-3-africa-en.pdf Accessed on: 20 April 2020.