Nigeria’s import levels are at least 10 times lower than those of countries with the highest GDP ratios, a sign that the West African nation is not import dependent.
The import-to-GDP ratio is the measure of a country’s reliance on import. A higher ratio generally indicates a more open economy, heavily reliant on imports, while a lower ratio indicates a relatively lower dependence on foreign goods and a higher degree of self-sufficiency.
In comparison, Nigeria has an 11.8% GDP ratio and is also not a prolific importer when compared with countries with similar GDP sizes. The average of nine countries with GDP ranging from $400-$450 billion as of 2022 was 47.9 percent, four times higher than Nigeria’s import-to-GDP ratio as reported by BusinessDay.
Here are the top ten import-dependent countries by GDP ratio
Hong Kong
Hong Kong, a Special Administrative Region of China, stands out as one of the most import-dependent economies globally. Its import-to-GDP ratio of 189.9 indicates that its imports significantly exceed its domestic production. The region’s economic model relies heavily on international trade, finance, and services. Capital and consumer goods such as electrical machinery and apparatus, clothing, radios, television sets, stereos, and computers represent Hong Kong’s largest group of imports. The second largest group includes mineral fuels, raw materials, semi-manufactured goods (such as synthetic and natural textiles, chemicals, and electronic components), and foodstuffs.
Read also: 10 African countries with highest GDP growth forecast for 2024
Luxembourg
Luxembourg, despite being a small landlocked country in Western Europe, boasts an impressive import-to-GDP ratio of 177.2. Known for its thriving financial sector and favorable tax policies, Luxembourg’s import dependence is closely tied to its role as a global financial and business hub. The top imports of Luxembourg include cars, refined petroleum, computers, scrap irons, and electricity.
Djibouti
Djibouti, strategically located at the crossroads of Africa and the Middle East, exhibits an import-to-GDP ratio of 171.2. This suggests a significant reliance on imports, a phenomenon closely tied to the country’s role as a major transshipment hub and its efforts to develop into a regional trade and logistics center. Imports include food and beverages, machinery and transportation equipment, electric appliances, and petroleum products.
Malta
Malta, a Mediterranean island nation, holds the third position with an import-to-GDP ratio of 152.5. The country’s strategic location has historically made it a crossroads for trade and commerce. Malta’s economy has diversified over the years, with services, manufacturing, and tourism playing key roles. Malta imports machinery and transport equipment, chemical products, and mineral fuels.
Read also: Nigeria’s climb to 10.6%: Tax-GDP ratio rollercoaster across African countries as SAS dip to 21%
Singapore
As a global trade and financial hub in Southeast Asia, Singapore has an import-to-GDP ratio of 150.3, reflecting its import-dependent nature. The city-state’s economic success is built on its open trade policies, world-class infrastructure, and a robust financial sector. Major imports are machinery, transport equipment, and crude petroleum.
Seychelles
Seychelles is an archipelago in the Indian Ocean, with an import-to-GDP ratio of 121.6. The nation heavily relies on tourism, fisheries, and offshore financial services. With a small domestic market and limited natural resources, Seychelles depends on imports for various goods and services essential for its economic activities. Seychelles’ main imports are petroleum products, machinery, and foodstuffs
Nauru
Nauru, a small island nation in Micronesia, has an import-to-GDP ratio of 114.8. Although the country is geographically isolated, its import dependence is influenced by the need to meet domestic demands and support its modest economic activities. Virtually all food, water, and manufactured goods are imported.
Read also: Nigeria’s reforms seen improving GDP growth to 3.1% in 2024 – UN
Slovakia
Situated in Central Europe, Slovakia maintains an import-to-GDP ratio of 104.8. As a member of the European Union, Slovakia’s economy is intertwined with regional trade dynamics. The country’s manufacturing sector, particularly in the automotive industry, contributes to its import dependence, as raw materials and components are sourced globally to fuel its export-oriented production. Major imports include machinery, automobiles, and mineral fuels.
Lesotho
Lesotho, a landlocked nation surrounded by South Africa, exhibits an import-to-GDP ratio of 100.8. Import dependence is a crucial aspect of Lesotho’s economic landscape, driven by factors such as limited natural resources and the need to meet the demands of its population. Lesotho’s main imports are manufactured goods, foodstuffs, machinery, and transport equipment.
Belgium
Belgium, a central player in the European Union, boasts an import-to-GDP ratio of 97.4. The country’s position as a major logistics and transportation hub contributes to its import dependence. Among Belgium’s main imports are raw materials (including petroleum), motor vehicles, chemicals, textiles, and food products.
