For the month of November 2021, Namibia recorded a trade deficit of N$3.3 billion, which is a significant improvement from the revised trade deficit of N$6.9 billion recorded in October 2021. A trade deficit occurs when the value of a country’s imports exceeds the value of its exports—with imports and exports referring both to goods, physical products, and services. In simple terms, a trade deficit means a country is buying more goods and services than it is selling.
This was stated by the Namibia Statistics Agency in its trade bulletin for the period under review released last week. The improved deficit emanated from Namibia’s export earnings increasing on a monthly basis by 1.3% to N$8.8 billion while the imports bill amounted to N$12.1 billion, representing a decline of 22.3% on a monthly basis.
According to Alex Shimuafeni, NSA CEO, international merchandise trade plays a crucial role in economic development as it links producers and consumers located in different countries into a global economic system.
“Availability of timely and high-quality trade statistics becomes a precondition for an in-depth analysis of the employment, production, income, consumption and overall welfare both at the country and global level,” said Shimuafeni.
The NSA bulletin added that Namibia’s trade activities picked up for the period of January to November 2021 when compared to the same period of 2020.
“Cumulative total trade (import + export) for the period of January to November 2021 stood at N$200.3 billion compared to N$178.1 billion recorded during the same period last year,” reads the report.
The monthly increase of 1.3% in exports of goods recorded in November 2021 was mainly reflected in uranium, which increased by N$658 million (69.4%), fruit and nuts increased by N$280 million (2800%), ores and concentrates of base metals increased by N$194 million (116.9%), non-monetary gold increased by N$164 million (19.9%), rubber tyres, interchangeable tyre treads, tyre flaps and inner tubes for wheels of all kinds increased by N$77 million (179.1%).
Meanwhile, the monthly decline of 22.3% in imports of goods recorded in November 2021 was mainly reflected in copper ores and concentrates, which decreased by N$1.3 billion (-81.9%).
Petroleum oil decreased by N$ 1.2 billion (-58.8 %), ores and concentrates of precious metals decreased by N$553 million (-99.1%), motor vehicles for the transport of goods decreased by N$203 million (-41.3%), sulphur and unroasted iron pyrites decreased by N$164 million (-100%).
Focussing on trade highlights by world zones for Africa, the trade deficit shrunk from N$4.5 billion in October 2021 to N$3.9 billion in November 2021. Exports picked up by N$1.5 billion to N$5.1 billion and imports increased by N$826.7 million to N$9 billion.