Economy crawls into the green

24 September 2021 | Economics

Jo-Maré Duddy



WINDHOEK

Namibia’s economy grew by 1.6% for the three months ended 30 June, the first positive year-on-year quarterly growth since the end of 2019.

The latest data released by the Namibia Statistics Agency (NSA) must be seen in context, though. The growth comes from a historic low base, as the gross domestic product (GDP) grew by -11.6% in the second quarter of 2020 when economy started buckling under the impact of the Covid-19 pandemic.

Second-quarter growth hasn’t been positive since 2018, when it came in at 5.2%. Since the start of the current recessionary cycle in 2016, average GDP growth in the second quarter was 1.6%. In comparison, GDP growth in the same quarter in 2014 and 2015 was 5.4% and 4.7% respectively.

In real terms, which allow for factors like inflation, the economy generated about N$32.7 billion in the past quarter – around half a billion more than the same three months last year. However, it falls way short of the nearly N$37.4 billion produced in the second quarter of 2018.

Hotels and tourism, a proxy for the state of tourism, contributed N$489 million to the second-quarter GDP. Although an improvement of about 34% from a year ago, it is still N$239 million below the 2019 figure, before tourism was hit by the pandemic.

Wholesale and retail generated nearly N$3.2 billion in the past quarter, N$468 million better than a year ago. The sector remains in the dumps compared to the peak of about N$4.4 billion in the last quarter of 2016, as the highly-indebted consumer struggles to recover.

Other sectors

Construction’s precarious predicament continued with the sector growing by -16.9% in the past quarter. Except for the same quarter in 2019, when it grew by 0.9%, construction has recorded red second quarters since 2016. Average second-quarter growth since 2016 has been -20%.

Considerably less cattle and sheep marketed as farmers rebuild their herds following good rains resulted in agriculture registering annual growth of -6.9% during the past quarter.

Shrinking deposits and claims at banks, as well as low demand for new insurance policies coupled with cancelation of policies as businesses cut down expenses resulted in growth of -17% in financial services activities in the past quarter. The sector has now been in the red for six consecutive quarters.

Similar News

 

Namdeb to continue mining for two decades

2 days ago - 15 October 2021 | Economics

PHILLEPUS UUSIKU Namdeb Diamond Corporation announced the approval...

Taxing the informal sector could be a ‘flop’

2 days ago - 15 October 2021 | Economics

PHILLEPSU UUSIKUGenerally, the informal sector is considered difficult to tax as it is associated with high administration costs.Research papers have shown that attempts to tax...

Beverage output boosting manufacturing sector

3 days ago - 14 October 2021 | Economics

PHILLEPUS UUSIKUDuring the second quarter of 2021, the manufacturing sector recorded a negative growth of 5.0%, although an improvement when compared to a contraction of...

Conservation agriculture crucial for sustainability

3 days ago - 14 October 2021 | Economics

Conservation agriculture is among the smart agriculture practices that contribute towards sustainable food systems.This is according to Acting Deputy Executive Director (ED), Department of Agriculture...

Search for African vaccine site to deepen

3 days ago - 14 October 2021 | Economics

GISELDA VAGNONI AND EMILY ROERwanda, Senegal and South Africa could be potential locations for Moderna's planned vaccine factory in Africa, the US drugmaker's co-founder and...

Supply constraints slowing global recovery

3 days ago - 14 October 2021 | Economics

Heather SCOTTWorldwide supply chain disruptions are driving price increases and draining momentum out of economies recovering from the Covid-19 pandemic, the IMF warned on Tuesday.The...

IMF reaffirms 'full confidence' in Georgieva

3 days ago - 14 October 2021 | Economics

DELPHINE TOUITOUThe IMF Executive Board reaffirmed on Monday its "full confidence" in the Washington-based crisis lender's chief, Kristalina Georgieva, keeping her on as managing director...

Developing countries outlook looks bleak

3 days ago - 14 October 2021 | Economics

HEATHER SCOTTThe ongoing hit from the Covid-19 pandemic and the failure to distribute vaccines worldwide is worsening the economic divide and darkening prospects for developing...

Covid gets most blame for economic chaos

4 days ago - 13 October 2021 | Economics

PHILLEPUS UUSIKUDue to the outbreak of the Covid-19 pandemic last year, resulting to inactive economic activities, the domestic economy contracted by 8.5%. During the first...

'Comprehensive' debt relief for poor countries

4 days ago - 13 October 2021 | Economics

Debt loads in low-income countries surged 12 percent to a record US$860 billion in 2020 amid the pandemic, prompting World Bank President David Malpass to...

Latest News

Creativity and mental health: Where...

2 days ago - 15 October 2021 | Health

Kalistu R Mukoroli, PR and brand strategistWe tend to preach about being creative, but isn’t this contributing to mental health issues? Creative people always push...

Soldiers turn to AR over...

2 days ago - 15 October 2021 | Health

STAFF REPORTER WINDHOEKSoldiers opposed to mandatory Covid-19 vaccinations have struck a defiant tone by...

Taxing the informal sector could...

2 days ago - 15 October 2021 | Economics

PHILLEPSU UUSIKUGenerally, the informal sector is considered difficult to tax as it is associated with high administration costs.Research papers have shown that attempts to tax...

Learning through play

2 days ago - 15 October 2021 | Society

Mariselle StofbergStimuBox is an online store that produces and sells personalised sensory boxes. These boxes contain fun and simple, age-appropriate activities that help with the...

Where heart meets experience

2 days ago - 15 October 2021 | Health

Mariselle StofbergWith her heart of gold, fierce determination to make a difference in the lives of others and ability to persevere, Dominic le Roux continues...

Living his passion every day

2 days ago - 15 October 2021 | Business

Michelline Nawatises Arne Schmid was born and raised in Windhoek. He completed high school at Deutsche Höhere Privatschule Windhoek (DHPS) and finished his studies...

EDITORIAL: No to forced vaccinations

2 days ago - 15 October 2021 | Opinion

We must encourage vaccination with every joule of energy we have, but must never force them upon anyone.We are pro-vaccination hardliners, but not to the...

Bahr celebrates 3 decades at...

2 days ago - 15 October 2021 | Society

Iréne-Mari van der WaltMarinda Bahr recently celebrated her 30th year with the Swakopmund municipality. Bahr’s colleague, Marolese Niemand, says she reported for duty two months...

Motivation to achieve and...

2 days ago - 15 October 2021 | Motors

Emilie Mandume Dean Gaeb started his education at Outjo Primary School in 2005 and completed his secondary education in 2017 at Outjo Secondary School.Rugby was...

Load More