Economy expands by 5.6% in second quarter
Only construction sector contracted
The value of goods and services produced in Namibia during the second quarter of 2022 was recorded at N$36 billion.
The Namibian economy expanded by 5.6% during the second quarter of 2022, compared to 5.5% registered in the corresponding quarter of 2021, according to the Namibia Statistics Agency (NSA).
Taking inflation into account, the value of goods and services produced in Namibia during the second quarter of 2022 was recorded at N$36 billion, compared to N$34.1 billion in the corresponding quarter of 2021.
Without taking inflation into account, the gross domestic product (GDP) came in at N$48.6 billion, up by N$5.4 billion when compared to the N$43.2 billion posted in the corresponding quarter of 2021.
Inflation is the increase in the price of goods and services, and averaged 5.7% during the second quarter of 2022.
Mining was the best performing sector during the review period, contributing about 29.4% to real GDP growth.
“The upsurge in the sector is mainly attributed to the diamond mining subsector that recorded an increase of 53.7% during the quarter under review,” the NSA pointed out.
The financial services sector was the second-best performer, with an estimated contribution of 16% towards real GDP growth, compared to a contraction of 10.1% in the second quarter of 2021.
The improved performance of the sector is mainly attributed to insurance and subsectors that recorded an accelerated growth of 23.4%, the agency added.
Construction still struggling
Meanwhile, the transport and storage and health sectors recorded growth rates of 10.5% and 10% respectively.
All other sectors - such as agriculture, fishing, manufacturing, electricity, wholesale and tourism - recorded positive growth rates, except for the construction sector, which contracted by 25.3% for the fourth consecutive quarter.
In terms of trade, the real value of export earnings stood at N$12.3 billion during the review period, compared to N$10.4 billion registered in the second quarter of 2021.
Namibia’s real import bill stood at N$21.6 billion in the second quarter of 2022, compared to N$17.4 billion recorded in the corresponding quarter of 2021.
Given these developments, the country recorded a trade deficit of N$9.3 billion during the second quarter of 2022. The trade deficit recorded in the review period has worsened when compared to the N$7 billion registered in the second quarter of last year.
Risks to growth
According to the Bank of Namibia, real GDP growth is projected to increase to 3.2% in 2022 before moderating slightly to 2.9% in 2023.
The projected improvement in 2022 is mainly due to anticipated growth in the mining industry, particularly diamonds and gold.
“Risks to domestic growth are predominantly in the form of monetary policy tightening around the world and high costs of key import items that are likely to persist for a long time,” the central bank said.
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Taking inflation into account, the value of goods and services produced in Namibia during the second quarter of 2022 was recorded at N$36 billion, compared to N$34.1 billion in the corresponding quarter of 2021.
Without taking inflation into account, the gross domestic product (GDP) came in at N$48.6 billion, up by N$5.4 billion when compared to the N$43.2 billion posted in the corresponding quarter of 2021.
Inflation is the increase in the price of goods and services, and averaged 5.7% during the second quarter of 2022.
Mining was the best performing sector during the review period, contributing about 29.4% to real GDP growth.
“The upsurge in the sector is mainly attributed to the diamond mining subsector that recorded an increase of 53.7% during the quarter under review,” the NSA pointed out.
The financial services sector was the second-best performer, with an estimated contribution of 16% towards real GDP growth, compared to a contraction of 10.1% in the second quarter of 2021.
The improved performance of the sector is mainly attributed to insurance and subsectors that recorded an accelerated growth of 23.4%, the agency added.
Construction still struggling
Meanwhile, the transport and storage and health sectors recorded growth rates of 10.5% and 10% respectively.
All other sectors - such as agriculture, fishing, manufacturing, electricity, wholesale and tourism - recorded positive growth rates, except for the construction sector, which contracted by 25.3% for the fourth consecutive quarter.
In terms of trade, the real value of export earnings stood at N$12.3 billion during the review period, compared to N$10.4 billion registered in the second quarter of 2021.
Namibia’s real import bill stood at N$21.6 billion in the second quarter of 2022, compared to N$17.4 billion recorded in the corresponding quarter of 2021.
Given these developments, the country recorded a trade deficit of N$9.3 billion during the second quarter of 2022. The trade deficit recorded in the review period has worsened when compared to the N$7 billion registered in the second quarter of last year.
Risks to growth
According to the Bank of Namibia, real GDP growth is projected to increase to 3.2% in 2022 before moderating slightly to 2.9% in 2023.
The projected improvement in 2022 is mainly due to anticipated growth in the mining industry, particularly diamonds and gold.
“Risks to domestic growth are predominantly in the form of monetary policy tightening around the world and high costs of key import items that are likely to persist for a long time,” the central bank said.
- [email protected]
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