Top 10 African countries with the highest GDP growth rate in the last decade

Gross Domestic Product (GDP) is a key indicator of a country’s economic health, especially when considered as a measure of its compound annual growth rate.

Business Insider Africa presents the top 10 African countries with the highest GDP growth rate in the last decade.
This list is courtesy of World Economics.
Libya ranks number 1 on the list.

The Gross Domestic Product of a country represents the entire value of all products and services produced within a certain period, offering a snapshot of a country’s economic performance.

However, the compound annual growth rate (CAGR) of GDP over time is a far more important indicator.

A high GDP CAGR suggests that an economy is developing not just consistently, but also sustainably and robustly.

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A high CAGR indicates that a firm, investment, or economy is not just increasing, but also continuously. It eliminates the noise of single-year anomalies and provides stakeholders with confidence that development is a long-term trend rather than a one-time accomplishment.

Countries having high GDP CAGR are viewed to be attractive investment destinations.

Foreign direct investment (FDI) tends to flow into nations that display continuous economic growth because investors seek out areas where they expect a return on investment.

A high CAGR indicates a favorable business climate, infrastructural development, and an improving standard of living, all of which increase the potential for financial gains.

Top 10 African countries and their contribution to Africa’s GDP

Furthermore, sustained GDP growth frequently suggests a diverse and creative economy.

Countries with high CAGRs often invest in a variety of industries, including technology, manufacturing, agriculture, and services.

This diversity protects the economy from being dependent on one industry, making it more responsive to global trends and less prone to be sector-specific.

With that said, here are the African countries with the highest according to World Economics, which states that “Compound Annual Growth Rates (CAGR) are derived from GDP Data in Purchasing Power Parity terms with added estimates for the size of the informal economy and adjustments for out-of-date GDP base year data.

The GDP Data has been developed by World Economics using World Bank PPP data, IMF growth rates, and World Economics research into base year uplifts and the informal economy size.”