Trade deficits to slow economic performance
N$4.6 billion recorded in May 2022
Namibia's trade deficit averaged N$3.0 billion between May 2021 and May 2022.
Namibia continues to be a net importer. For the past twelve months (May 2021- May 2022), Namibia did not record any trade surplus. This is evident in the trade statistics released by the Namibia Statistics Agency (NSA).
During May 2022, Namibia’s trade deficit widened to N$4.6 billion, compared to N$4.1 billion and N$2.6 billion recorded in April 2022 and May 2021, respectively.
The total value of exports during May 2022 stood at N$5.7 billion, compared to N$6.0 billion and N$4.0 billion registered in April 2022 and May 2021, respectively.
On the other hand, Namibia’s import bill stood N$10.2 billion in May 2022, compared to N$10 billion and N$6.6 billion recorded in April 2022 and May 2021, respectively.
According to the Namibia Statistics Agency, a trade deficit negatively affects the Gross Domestic Product (GDP) and employment rate of a country. Moreover, it reduces the incomes of domestic workers.
On the other hand, a trade surplus creates employment and boost economic growth, NSA pointed out.
Commenting on the statistics, local analyst Josef Sheehama notes that a trade surplus can create employment and boost economic growth, but may also lead to higher prices and interest rates within an economy. A country's trade balance can also influence the value of its currency in the global markets, as it allows a country to have control of the majority of its currency through trade. Open economies tend to grow faster and more steadily than closed economies and economic growth is an important factor in job creation. Profitable companies tend to hire more workers than those posting a loss. Trade can also be a catalyst for greater efficiency and productivity. This is because companies have access to a wider range of high-quality, affordable inputs. They also have access to technology and know-how they could not obtain in a closed economy, Sheehama said.
Markets
During the month of May 2022, Namibia’s top five export partners were Botswana, South Africa, Zambia, Netherlands, and the Democratic Republic of Congo.
These top five markets accounted for 66.7% of Namibia’s total exports, up from the 59.6 percent witnessed in April 2022 and 53.6% recorded in May 2021, NSA said.
In addition, Namibia sourced most of imports from South Africa, India, China, Peru and Bahrain. The top five import markets supplied Namibia with 59.3% of all imports required by the country, up from its April 2022 level of 53.7% and down from 61.3% recorded in May 2021, NSA said.
Products
Diamonds was Namibia’s largest export commodity during the month, accounting for 28.1% of total exports mainly destined to Botswana, United Arab Emirates (UAE) and Israel, NSA added.
This was followed by Fish which accounted for 12.3% of total exports destined mostly to Spain, Zambia, and Italy. Copper blisters ranked third on the list with a share of 10.1% destined for the Netherlands, China, and the DRC.
Lastly, petroleum oils were Namibia’s highest imported commodity during the period under review, followed by copper ores and concentrates, civil engineering and contractors’ equipment, sulphur and unroasted iron pyrites. Motor vehicles for the transportation of goods followed in fifth position. [email protected]
During May 2022, Namibia’s trade deficit widened to N$4.6 billion, compared to N$4.1 billion and N$2.6 billion recorded in April 2022 and May 2021, respectively.
The total value of exports during May 2022 stood at N$5.7 billion, compared to N$6.0 billion and N$4.0 billion registered in April 2022 and May 2021, respectively.
On the other hand, Namibia’s import bill stood N$10.2 billion in May 2022, compared to N$10 billion and N$6.6 billion recorded in April 2022 and May 2021, respectively.
According to the Namibia Statistics Agency, a trade deficit negatively affects the Gross Domestic Product (GDP) and employment rate of a country. Moreover, it reduces the incomes of domestic workers.
On the other hand, a trade surplus creates employment and boost economic growth, NSA pointed out.
Commenting on the statistics, local analyst Josef Sheehama notes that a trade surplus can create employment and boost economic growth, but may also lead to higher prices and interest rates within an economy. A country's trade balance can also influence the value of its currency in the global markets, as it allows a country to have control of the majority of its currency through trade. Open economies tend to grow faster and more steadily than closed economies and economic growth is an important factor in job creation. Profitable companies tend to hire more workers than those posting a loss. Trade can also be a catalyst for greater efficiency and productivity. This is because companies have access to a wider range of high-quality, affordable inputs. They also have access to technology and know-how they could not obtain in a closed economy, Sheehama said.
Markets
During the month of May 2022, Namibia’s top five export partners were Botswana, South Africa, Zambia, Netherlands, and the Democratic Republic of Congo.
These top five markets accounted for 66.7% of Namibia’s total exports, up from the 59.6 percent witnessed in April 2022 and 53.6% recorded in May 2021, NSA said.
In addition, Namibia sourced most of imports from South Africa, India, China, Peru and Bahrain. The top five import markets supplied Namibia with 59.3% of all imports required by the country, up from its April 2022 level of 53.7% and down from 61.3% recorded in May 2021, NSA said.
Products
Diamonds was Namibia’s largest export commodity during the month, accounting for 28.1% of total exports mainly destined to Botswana, United Arab Emirates (UAE) and Israel, NSA added.
This was followed by Fish which accounted for 12.3% of total exports destined mostly to Spain, Zambia, and Italy. Copper blisters ranked third on the list with a share of 10.1% destined for the Netherlands, China, and the DRC.
Lastly, petroleum oils were Namibia’s highest imported commodity during the period under review, followed by copper ores and concentrates, civil engineering and contractors’ equipment, sulphur and unroasted iron pyrites. Motor vehicles for the transportation of goods followed in fifth position. [email protected]
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