Economy grows but hardship persists

Total income earned by Namibians has shrunk by nearly N$1 billion in both 2020 and 2021.Data released by the Namibia Statistics Agency (NSA) yesterday showed working Namibians were paid about N$80.37 billion and N$80.29 billion in total in 2020 and 2021 respectively, down from nearly N$81.25 billion in 2019.The statistics showed Namibia’s real gross national income (GNI) per capita in 2021 was N$54 841, about two percent less than the previous year and the lowest figure in at least nine years. In 2015, before Namibia entered its recession of five years, the real gross GNI per capita was N$63 921, or about 14% more.The figures formed part of the NSA’s preliminary national accounts, which showed Namibia’s economy grew by 2.4% last year, following a record contraction of 7.9% in 2020.In real terms, Namibia’s gross domestic product (GDP) last year was about N$136.6 billion, around N$3.2 billion more than in 2020. However, the GDP is still below the N$146.1 billion of 2018. Namibia’s real GDP in the past two years have been the lowest since 2013.PRIMARY SECTORThe primary sector was the economy’s saving grace last year, growing by 8% overall – an improvement on the -6.9% and -5.9% of 2019 and 2020 respectively.Mining and quarrying recorded growth of 13.6% in 2021, up from -15% the previous year. Uranium growth boomed to 25.8%, up from contractions in the previous two years. Diamond mining growth recovered to 2.5% after contracting by 14.9% in 2020.In real terms, mining pumped about N$13.4 billion into the economy last year.Agriculture boasted positive growth too, but at 2% fared worse than in 2020 when it grew by 6.5%. Its contribution to the GDP was nearly N$11.2 billion.SECONDARY SECTORNamibia’s secondary industries spent their second consecutive year in the red, growing by -6.6%. In 2020, the sector contracted by 12.1%. It has only managed one year of positive growth since 2016.Manufacturing grew by -6.2% last year, a better performance than the -17.1% of 2020.Construction’s contraction of 10.2% means the sector has now been in recession for six consecutive years.Secondary industries contributed about N$20.2 billion in total to the GDP in real terms last year, its worst performance since at least 2014. Its contribution in real terms peaked at N$27.3 billion in 2015.TERTIARY SECTORThe tertiary sector escaped its recession, growing by 1.9% in 2021.Wholesale and retail trade had its best year since 2016. With growth of 6.1%, the sector broke free from a four-year recession.In real terms, wholesale and retail contributed nearly N$12.5 billion to the GDP last year. Although some N$700 million more than in 2020, the sector remains way off its peak of nearly N$16.9 billion in 2016.Hotels and restaurants, a proxy for tourism, recorded growth of 10.4% compared to -30.4% in 2020.In real terms the sector’s GDP contribution was about N$2.3 billion, around N$219 million more than in 2020, but still a far cry from the about N$3 billion in 2019.

Economy grows but hardship persists

Comments

Namibian Sun 2025-05-02

Please login to leave a comment

Economy grows but hardship persists

Comments

Namibian Sun 2025-05-02

Please login to leave a comment

Login