WINDHOEK – The latest figures from the Namibia Statistics Agency indicates that the domestic economy performance remained suppressed in the second quarter of 2018, recording a contraction of 0.2 percent compared to the same period of 2017. Quarter on quarter, the economy maintained the same pace of declining growth of 0.2 percent.
The poor performance is largely driven by the manufacturing sector that posted a decline of 12.5 percent in real value added relative to a strong growth of 9.8 percent recorded in the corresponding quarter of 2017.
The wholesale and retail trade sector posted a decline of 5.8 percent, indicating that demand for goods and services continue to be subdued, however, showing signs of recovery, when compared to the same period of 2017 that registered a decline of 11.4 percent.
According to the NSA’s Statistician General and CEO, Alex Shimuafeni, government efforts to improve the fiscal space by reducing and capping on unnecessary expenditure through fiscal consolidation is exerting further pressure on the economy, evidenced by the poor performance of health and education sectors that recorded negative growth rates of 4.9 percent and 6.2 percent, respectively.
Despite good rainfall and promising livestock prices, the agriculture sector dipped into a contraction, recording a 1.1 percent due to fewer animals made available for slaughter relative to a strong growth of 20.6 percent registered in the corresponding quarter of 2017.
However, sectors that recorded strong growths in real value added during the period under review include mining and quarrying (22.4 percent), construction (23.8 percent) and water and electricity (16.7 percent).
“I would also like to emphasise the importance of accurate and timely delivery of data from our stakeholders in private and public sectors to the Namibia Statistics Agency (NSA), on which compilation of quarterly GDP depends. Finally, I wish to express my appreciation to all the data providers; both institutions and individuals, without whose assistance the publication would not have been possible,” said Shimuafeni.