Namibia’s economy grew by 3.7 percent in the second quarter

Hertta-Maria Amutenja

The Namibian economy showed a growth of 3.7 percent during the second quarter of 2023, reflecting a slowdown compared to the remarkable 8.5 percent growth recorded in the same quarter of 2022.

Namibia’s nominal Gross Domestic Product (GDP) for the second quarter of 2023 was N$58.6 billion, displaying an increase of N$7.3 billion compared to the same period in 2022.

This is according to Alex Shimuafeni, Statistician-General and Chief Executive Officer (CEO) of the Namibia Statistics Agency (NSA), who presented the economic performance report for the second quarter of 2023 this week.

He, however, indicated that the real GDP growth rate saw a slight deceleration, standing at 3.7 percent, a decrease from the robust 8.5 percent observed during the same quarter in the previous year.

Shimuafeni highlighted that this slowdown is primarily attributed to declines in the construction agriculture and forestry sectors.

He underscored the critical insights provided by GDP figures, essential for policymakers, businesses and the public.

“The slow performance is largely attributable to the Construction activities and ‘Agriculture and Forestry’ activities which posted declines in real value added of 35.9 percent and 31.9 percent, respectively. Additionally, financial services and ‘public administration and defence’ sectors decelerated, posting growth rates of 2.6 percent and 2.2 percent, respectively,” he said.

Shimuafeni is optimistic that despite these setbacks, other sectors displayed resilience and contributed to the overall growth of the economy.

He said the electricity, water, wholesale and retail trade sectors showcased robust growth, illustrating their pivotal role in supporting the economy during the period.

“However, the expansion of economic activities is observed in the sectors of electricity, water and wholesale and retail trade posting growths of 14.4 percent and 8.2 percent in the quarter under review compared to the 12.9 percent and 2.1 percent recorded in the corresponding quarter of 2022, respectively,” stated Shimuafeni.

Furthermore, Shimuafeni stressed the importance of accurate and timely data from stakeholders in both the private and public sectors, highlighting its indispensable role in compiling quarterly GDP figures by NSA.

Such precise data, he noted, is fundamental for informed decision-making and gaining a comprehensive understanding of the nation’s economic landscape.

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