Economy & Development
Estimated GDP: US $ 9.24 billion (2018)
Per capita income (purchasing power parity): 906 US $ (2019)
Human Development Rank (HDI): 189 (of 189) (2018)
Proportion of poverty (less than $ 1.90 per day): 44.5 (2019)
Distribution of income (Gini coefficient): 34.0 (2014)
Economic Transformation (BTI): Rank 111 of 137 (2020)
Economic structure and economic situation
According to ezinereligion, Niger is an agricultural country and the third largest uranium exporter in the world. The agricultural area of Niger amounts to approx. 15%, of which only 4% can be used for plant cultivation. 11% are pasture and scrubland / forest, the remaining 85% are deserts and desert-like areas. To the north of the agronomic dry line (200 mm isohyte – about 50 km north of Tahoua) – farming and arable farming is not possible or extremely risky. Extensive mobile animal husbandry predominates in the pastoral zone. The economic prospects for Niger are favorable and primarily geared towards the further expansion of irrigated agriculture and other agricultural areas and the expansion of the infrastructure.
Animal husbandry, arable farming and horticulture, fishing, forestry and hydropower, but also mining, comprise the primary sector (primary production) in and through which the majority of the Nigerien population earns a living.
The secondary sector (industrial sector) is characterized by manufacturing industries, ie further processing of raw materials from: Agriculture (animals, crops, trees, etc.) and mines (uranium, oil, gold, coal, etc.), but also manufacturing.
In the tertiary sector (service sector) the largest income comes from private services in the areas of trade, (arts) crafts, tourism and hospitality. Due to the use of labor as a production factor, this sector is very labor-intensive and is becoming increasingly important in Niger.
The quaternary sector (information sector) and the quintary sector (waste management) are marginal in Niger.
Percentage share of the individual economic sectors in the gross domestic product:
- 39.5% primary sector
- 14.9% secondary sector
- 45.6% tertiary sector
It is noticeable that the income generated from the 1st sector has shifted in favor of the 3rd sector, which is largely due to a considerable increase in services.
According to the IMF, Niger ranks 141st out of 186 countries in the 2018 gross domestic product ranking with US $ 9.24 billion; the GDP per capita 2018 (nominal) is approximately 498 US; This puts Niger in 185th place out of 192 countries. With a GINI coefficient of 34.0, Niger has an unequal income distribution. 74.9% of the population live in severe poverty and below the poverty line (poverty line), there are 44.5% of the population lives on less than 1.90 US $ per day. The MPI (Multi-Dimensional-Poverty Index) shows Niger before South Sudan on the penultimate rank.
Belonging to the Franc-CFA zone guarantees relative price stability. However, Niger cannot pursue an independent inflation and exchange rate policy either. Before the introduction of the euro, the FCFA was linked to the French franc through a fixed exchange rate of 1: 100. This link was retained when the euro was introduced and adjusted to the exchange rate applicable to the FF; thus the exchange rate is 1 euro = 655.9 FCFA. The economic development of the countries of the monetary union is more positive than in the region as a whole.
Overall, Niger is still a long way from an economic transformation to a social market economy – according to the BTI, Niger ranks 111th out of 137 (2019) with positive trends towards democracy, market economy and governance. The economic structure of Niger is dominated by agriculture, exports are dominated by uranium. The Nigerien trade balance remains negative with a deficit of US $ 960 million. ImportedIn 2017, packaged medicines (7.7%), rice (5.8%), and palm oil (4.5%) were primarily used. Furthermore: machines, fuels and food – from France, India, Ghana, China and Belgium-Luxembourg. The majority of exports are made by uranium, followed by refined oil, gold, and animal products. The main export countries are France (46%), China and Mali (16% each), South Korea (11%) and Switzerland (4.7%). Animals and animal products are mostly exported to neighboring countries; partly living “on the hoof”. The economic situation of the Niger remains difficult.
Of economic importance are the financial returns from migrant workers who regularly send money to their Nigerien families; the major part of this money is sent from Nigerians from neighboring countries, such as Nigeria, Benin.