Staff Reporter
THE domestic economy posted a growth of 3.7% during the second quarter of 2023, which represents slower growth compared to the 8.5% growth posted in the corresponding quarter of 2022. This information comes from the Quarterly Gross Domestic Product (QGDP) report by the Namibia Statistics Agency (NSA).
Alex Shimuafeni, Statistician-General & CEO, explained that the economy has continued to remain on a positive trajectory for nine consecutive quarters despite showing signs of slowing down. He stated, “The slow performance is largely attributable to the construction activities and ‘Agriculture and forestry’ activities, which posted declines in real value added of 35.9% and 31.9%, respectively. Additionally, the financial services and ‘Public Administration and Defence’ sectors decelerated, posting growth rates of 2.6% and 2.2%, respectively.”
However, statisticians have noted that expansion of economic activities is observed in the sectors of ‘Electricity and Water’ and ‘Wholesale and Retail Trade,’ with growth rates of 14.4% and 8.2% in the quarter under review, compared to the 12.9% and 2.1% recorded in the corresponding quarter of 2022, respectively. Shimuafeni further stated, “Furthermore, activities picked up in the sectors of ‘Transport and Storage’ and ‘Information and Communication’ sectors, recording growth rates of 8.3% and 1.8% compared to the growth rates of 2.3% and 1.2% witnessed in the second quarter of 2022, respectively. Despite slower growth in the Mining and Quarrying sector, double-digit growth of 32.0% is observed relative to a stronger growth of 64.5% in the corresponding quarter of 2022.”
On the demand side, he explained that private final consumption expenditure is under pressure, recording a contraction of 4.2% during the period under review relative to a strong performance of 23.0% in the parallel quarter. Shimuafeni clarified that the decline in final consumption expenditure is attributed to the pressure of the cost of living, leading consumers to reduce spending on goods and services. “On the other hand, government final consumption expenditure marginally expanded, recording slower growth of 0.6% in the second quarter of 2023 when compared to the 1.3% posted in the corresponding period. Government fiscal policy remains consolidated. Gross Domestic Product in nominal terms stood at N$58.6 billion, up by N$7.3 billion when compared to the N$51.4 billion registered in the corresponding quarter of 2022,” Shimuafeni said.
