In South Africa, only 20.1% of the GDP is devoted to capital investment while in Nigeria, capital investment accounts for 40.2% of the GDP. Which will be the most likely result?

Answer 1

Based on the information provided, it is most likely that Nigeria will experience higher economic growth compared to South Africa.

A higher percentage of GDP devoted to capital investment indicates that a country is allocating more resources towards productive activities such as infrastructure development, machinery, technology, and research and development. This leads to increased productivity, innovation, and economic growth.

In this case, Nigeria's higher capital investment percentage (40.2% of GDP) suggests that it is prioritizing economic expansion and development more than South Africa (20.1% of GDP). Therefore, Nigeria is likely to experience higher economic growth, while South Africa might have slower growth in comparison.