By Edgar Brandt
WINDHOEK – Although the economy is estimated to have expanded by 1.6 percent during the first quarter of 2014, the statistician general Dr John Steytler has warned the growth is far too slow.
Steytler, who heads the Namibia Statistics Agency (NSA), said much more needs to be done to grow the Namibian economy at a bigger pace.
According to the NSA chief the minuscule first quarter growth emanated from the primary and secondary industries, while output of primary industries contracted. “1.6 percent growth is nothing to celebrate. We have to do more to stimulate the economy, specifically the manufacturing sector,” said Steytler during the NSA’s update on Namibia’s latest economic statistics yesterday.
During the first quarter of 2013, the local economy actually contracted by 3.8 percent.
With regard to the external sector, the NSA reports that Namibia’s trade deficit is estimated to have narrowed to N$2.2 billion during April, from N$4.1 billion a month earlier.
This figure is however still much higher than the deficit of N$1 billion that was recorded during the same month of 2013.
“This narrowing trade deficit was brought about by the strong decline in imports of 32.1 percent to N$5.7 billion, from N$8.4 billion one month earlier. The decline in imports in turn was largely reflected in the import value of items such as boilers, precious stones and mineral fuel and oils that declined to N$2.1 billion during the month under review, from N$4.7 billion a month earlier, representing a decline of 55.8 percent.”
According to the NSA, Namibia’s main trading partners continue to be South Africa, Germany and China on the import side and Switzerland, South Africa, the United States of America and Angola on the export side.
Regarding the pulse of the local economy, the NSA reports that within the secondary industries the construction sector performed exceptionally well, recording robust growth of 22 percent.
“On the other hand, manufacturing, and electricity and water, which are the main sub-sectors of the secondary industries, are estimated to have declined by just over 10 percent and 0.6 percent respectively. The robust performance of the construction sector was mainly due to construction works for general government that recorded a notable 29.4 percent increase during the period under review,” said Steytler.
The NSA report indicated that a relatively strong performance of tertiary industries was mainly reflected in the wholesale and retail trade, and transport and communication sub-sectors that are estimated to have expanded 20.6 percent and 11.9 percent respectively.
Steytler said that wholesale and retail trading was influenced by factors including supermarkets and vehicles that recorded increases of 35.5 percent and 33.9 percent respectively.
Furthermore, Steytler said that Namibia’s annual inflation accelerated to 6.1 percent from 5.9 percent.
“The increase in the annual rate of inflation mainly resulted from the food price and transport inflation that accelerated to 10.7 percent and 10.5 percent respectively during the month under review,” he said.
He added that within the food price category the major culprits were meat, at 14.1 percent, followed by vegetables at 12.5 percent.