Chamwe Kaira
Economic activity slowed in the second quarter of the year, recording 1.6% growth in real value added compared to 3.3% in the same period of 2024.
In nominal terms, the size of the economy was estimated at N$64.8 billion, up from N$58.8 billion in the corresponding quarter of 2024.
Statistician General and Namibia Statistics Agency (NSA) chief executive officer, Alex Shimuafeni, said the performance was mainly influenced by the tertiary industries, which grew by 3.9% compared to 5% a year earlier.
Growth in the sector was recorded in wholesale and retail trade (5.2% compared to 9.1%), education (5.6% from 1%), financial services (5% compared to 9.1%) and public administration and defence (3.7% compared to 4.3%).
Primary industries improved by 0.1% in real value added after a 2.7% decline in the second quarter of 2024.
However, agriculture and forestry contracted by 3.5%, while fishing and fish processing on board declined by 4.4%.
“The decline in the performance of the sectors is reflected in the significant reduction of total animals marketed and a decrease in volume of fish landed,” Shimuafeni said.
Secondary industries fell by 5.8% in real value added compared to a 2% growth in the same period last year.
Shimuafeni said the performance came from the manufacturing sector, which declined by 9.7% compared to a 1.2% increase in 2024.
On the demand side, private final consumption expenditure fell by 7.2% compared to a 26.6% increase in the same quarter of 2024, as households came under pressure.
Government final consumption expenditure grew by 4.2% compared to 2.6% last year, attributed to an increase in public servants.
Gross fixed capital formation rose by 5% after a 0.6% decline in the second quarter of 2024, supported by investment in machinery, transport equipment and construction activities.
Exports of goods and services increased by 18.5%, while imports declined by 4.7%. The result was a narrower external balance deficit, which Shimuafeni described as encouraging for the economy.
