Domestic economy grows by N$1.1 billion over a year
The domestic economy remained in a positive trajectory in the third quarter of 2021, showing an increase of N$1.1 billion over a year, according to the Namibia Statistics Agency (NSA).
The domestic economy increased by 2.4% compared to a decline of 12.3% recorded in the corresponding quarter of 2020. In nominal terms, the size of the economy was estimated at N$45 billion in the third quarter of 2021, relative to the N$ 43.9 billion posted in the same quarter of 2020.
According to the NSA, the expansion of economic activities in the third quarter of 2021 was observed in almost all sectors of the economy.
“Double-digit growth rates were registered in ‘mining and quarrying (41.9%) and ‘hotels and restaurants (19.5%). Furthermore, the following sectors also posted strong growths during the period under review health (7.3%); ‘agriculture and forestry (5.9%); ‘transport and storage (5.6%); and ‘real estate and professional service’ (4.2%),” Statistician-General of the NSA, Alex Shimuafeni said.
However, Shimuafeni noted that decreased economic activities were observed in the secondary and some tertiary industries. The construction sector recorded the deepest contraction of 43.7%, followed by the financial services sector declining by 10.9%. Likewise, the ‘manufacturing’ sector declined by 2.65% and the ‘wholesale and retail trade sector also registered a contraction of 0.7%.
Meanwhile, expenditure on real GDP increased by 2.4% in the quarter under review, mainly driven by private final consumption.
In nominal terms, the private final consumption expenditure stood at N$34.9 billion during the period under review, up from N$31.3 billion recorded in the corresponding quarter of 2020.
“While the government final consumption expenditure stood at N$11.3 billion down from N$12.1 billion in the third quarter of 2020. In real terms private consumption increased by 18% in the quarter under review while government consumption grew by 2.3%,” he added.
Similarly, investment stood at N$6 billion in the quarter under review, down from N$7.7 billion in the corresponding quarter of 2020. In real terms, investment declined by 43.3% in the third quarter of 2021.