THERE may be light at the end of the tunnel for the Namibian economy, which has been in the negative for the past few years, with the Namibia Statistics Agency (NSA) announcing that for the second quarter of 2021 the domestic economy rebounded into a positive trajectory, recording a positive performance of 1.6%.
The downturn of the economy has had widespread effects over the past two years, resulting in many Namibians losing their income and inadvertently narrowing the tax base.
In statistics released by the agency today, Alex Shimuafeni, Statistician General, stated that the economy grew by 1.6% compared to a 11.6% decline recorded in the corresponding period in 2020.
In nominal terms, GDP stood at N$43.3 billion in the quarter under review, relative to the N 42.8 billion posted in the same quarter of 2020.
This shows that the size of the economy grew by half a billion Namibia Dollars year on year.
The second quarterly statistics presents Quarterly Gross Domestic Product (GDP) estimates and analysis short-term movements in the economy, as opposed to the annual GDP that provides in-depth and comprehensive view of the changes in the economy.
The suppressed economic activities in the corresponding period of 2020 has lowered the usual baseline of the overall economy and in particular for the most sectors of the economy.
The positive performances observed in the second quarter of 2021 was a result of growth posted in the Hotels and Restaurants sector due to relaxation of COVID-19 regulations, coupled with the roll-out of COVID-19 vaccines.
“This sector registered solid growth of 34.3% in real value added. The Wholesale and Retail sector grew by 17.3% as economic activities gains momentum. Administrative and Support Services sector posted positive performance of 15.6% in real value added, following an improved international and domestic passenger arrival. Fishing sector posted a strong performance of 13.8% arising from the improved landings in demersal and mid-water fisheries,” Shimuafeni summarised.