WINDHOEK – Sharp declines in the real value added of hotels and restaurants and the construction sector of 31,2 percent and 17,7 percent respectively, resulted in slow growth of 2,3 percent for the Namibian economy in the second quarter of 2013, compared to an increase of 12,3 percent in the corresponding period last year.
The only real stars in the economy during this period was agriculture, which showed an exceptional growth of 42,3 percent compared to 10 percent registered in the corresponding quarter, and construction works for government that increased by 89,8 percent. The poor performance of the construction sector was reflected in the value of buildings completed that declined by 27,3 percent.
The strong growth in agriculture resulted from the livestock sub-sector that recorded an increase of 81,1 percent in real value added. The increase in livestock was reflected in the large number of livestock marketing which can be attributed to the ongoing drought that continues to force farmers to sell their animals.
Presenting the 2nd quarter GDP report, the Namibian price index bulletin for August 2013 and the June trade statistics, statistician general Dr John Steytler of the Namibian Statistics Agency (NSA) said although the economy had slowed down during the period under review, the fishing industry as well as wholesale and retail trade also recorded positive performances.
He nevertheless warned that NDP4 priority sectors such as mining, electricity and water as well as transport and communications recorded declines. The director of economic statistics at NSA, Ndamona C. Kali fuelled the worries by announcing that the annual inflation rate for August was estimated at 6 percent while the corresponding rate recorded in the same period last year was 5,8 percent.
The increase in the annual inflation rate was caused by an increase in the prices of food and non-alcoholic beverages (6,7 percent), housing, water, electricity, gas and other fuels (7,8 percent) and hotels, restaurants and cafes (9 percent).
Steytler said the poor performance of the mining sector, which showed a decline of 10,4 percent was brought about by the diamond mining and metal ores subsectors which recorded declines in real value added of 12,6 percent and 11,2 percent, respectively.
“However, uranium mining and other mining which includes granite, marble and slat and fluorspar registered moderate growth rates in real value added of 7,6 percent and 8,1 percent respectively,” he added.
Of real concern is the decline of 2,5 percent recorded for the transport and communications sector and the decline of 17,7 percent in the construction sector. The slowdown in the transport and communications sector was largely observed in air transport, port services and the travel agency and tour operator sub-sectors which declined by 25,2 percent, 18 percent and 16,8 percent respectively.
Although fishing and fish processing on board recorded growth of 11,7 percent it is still is a sharp decline compared to the 24,9 percent growth recorded during the same time last year. The slower growth was mainly influenced by demersel fisheries landings that declined by 1,4 percent.
Mid-water fisheries on the other hand performed well with landings expanding by 46,1 percent.
The wholesale and retail sector recorded growth of 12,8 percent compared to an increase of 16,6 percent registered in the same period last year. The performance was mainly reflected in sales of the subsector furniture that slowed down from 15,5 percent to 8,4 percent in the second quarter of 2013. Vehicle sales also recorded slower growth of 10,2 percent in this period.
Another worry for the NSA is that the hotels and restaurant sector, also a NDP4 priority sector, recorded a decline of 31,2 percent compared to the same period in 2012. The poor performance was also reflected in the number of bed nights and room nights sold that declined by 30,1 percent and 31,3 percent respectively. The sector is struggling mainly due to the prevailing weak global economic conditions, Steytler said.
By Deon Schlechter