The size of the Namibian economy increased by N$ 1.1 billion over a year after it was estimated at N$ 45.0 billion in the third quarter relative to the N$ 43.9 billion posted in the same quarter of 2020.
This is revealed by the Namibia Statistics Agency (NSA) in the new economic statistics released yesterday. NSA’s Statistician General and Chief Executive Officer (CEO), Alex Shimuafeni, says the domestic economy remained in a positive trajectory in the third quarter of 2021, recording a growth of 2.4 percent compared to a decline of 12.3 percent recorded in the corresponding quarter of 2020. The expansion of economic activities in the third quarter of 2021 was observed in almost all the sectors of the economy. “Double digit growth rates were registered in ‘Mining and Quarrying’ (41.9%) and ‘Hotels and Restaurants’ (19.5%). Furthermore, the following sectors also posted strong growths during the period under review; Health (7.3%); ‘Agriculture and Forestry’ (5.9%); ‘Transport and Storage’ (5.6%); and ‘Real Estate and Professional Service’ (4.2%),” he shares.
However, Shimuafeni points out that decreased economic activities were observed in the secondary and some tertiary industries. “The Construction sector recorded the deepest contraction of 43.7 percent, followed by Financial Services sector declining by 10.9 percent. Likewise, ‘Manufacturing’ sector declined by 2.6 percent and ‘Wholesale and Retail Trade’ sector also registered a contraction of 0.7 percent. “
GDP is calculated in three different ways, namely the Income approach, Production approach, and Expenditure approach. The NSA has been producing quarterly GDP by production approach and today it is hereby releasing the quarterly GDP estimates by expenditure approach for the first time.
The Expenditure approach measures the final uses of the produced output as the sum of final consumption, gross capital formation, and exports less imports. Expenditure on real GDP increased by 2.4 percent in the quarter under review, mainly driven by the private final consumption.
In nominal terms the private final consumption expenditure stood at N$ 34.9 billion during the period under review, up from N$31.3 billion recorded in the corresponding quarter of 2020. While the government final consumption expenditure stood at N$11.3 billion, down from N$12.1 billion in the third quarter of 2020. In real terms private consumption increased by 18 percent in the quarter under review while government consumption grew by 2.3 percent.
Similarly, investment stood at N$6.0 billion in the quarter under review, down from N$7.7 billion in the corresponding quarter of 2020. In real terms, investment declined by 43.3 percent in the third quarter of 2021.
In the third quarter exports of goods and services stood at N$13.4 billion while import of goods and services stood at N$21.5 billion, resulting in a trade deficit of N$8.1 billion. In real terms, exports of goods and services increased by 3.4 percent, while import of goods and services increased by 6.1 percent.