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GDP shrunk again in 3rd quarter of 2020

GDP shrunk again in 3rd quarter of 2020

Gross Domestic Product (GDP) shrunk by N$1.1 billion in the third quarter of 2020 (July – September) to N$44.7 billion from N$45.8 billion in the same quarter of 2019, according to the statistic agency in its latest quarterly figures released on Thursday 17 December.

According to the figures from the NSA, the poor performance of the economy during the third quarter of 2020 was observed across various major sectors.

NSA Statistician-General, Alex Shimuafeni said the largest negative contributors to growth in GDP in the third quarter of 2020 were the manufacturing (-3.1 percentage point), mining and quarrying (-2.9 percentage point) and hotel and restaurants (-1.4 percentage point).

On the other hand, Shimuafeni said the positive performance was observed in the ‘information and communication’ sector as demand for data services and internet connectivity surged from educational institutions, businesses and households during the reporting period.

“The sector registered a strong growth of 13.8%,” he noted.

Shimuafeni said similarly, the health sector registered a growth of 10.3% growth as a result of the high demand for health workers.

He meanwhile said Namibia’s third quarter of 2020 was characterized by state of emergency measures which saw the economy on a downward trend, recording a contraction of 10.5% compared to a decline of 2.1% recorded in the corresponding quarter of 2019.

“Thus far in the year 2020, the economy has registered contractions of 1.4% in the first quarter, 10.1% in the second quarter, and 10.5% in the third quarter. The deeper contractions in the second and third quarters are as a result of the impact of the COVID-19 restrictions,” he concluded.


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