Guest Contributor | Nov 14, 2022 | 0
Size of domestic economy improves to N$180.8 billion in 2021
The domestic economy rebounded to positive growth for the first time in two years, growing by N$6.9 billion to N$180.8 billion in 2021, according to the Namibia Statistics Agency’s latest Preliminary National Accounts report.
The size of the economy still remains below pre-pandemic levels of N$ 181.2 billion, however, it is a significant improvement compared to the N$ 173.9 billion registered in the corresponding year of 2020.
NSA Statistician-General and CEO, Alex Shimuafeni said following the relaxation of COVID-19 measures imposed in 2020, economic activities have picked up in 2021.
“The increase in the economic activities which lead to the positive trajectory was notably observed in the Primary and Tertiary industries. The secondary industries performance remained weak albeit showing signs of improvement,” Shimuafeni said.
The improved performance was mainly observed in the mining and quarrying sector which posted a growth rate of 13.6% in real value-added. Shimuafeni noted that the performance in mining and quarrying was due to an increase in diamonds production resulting from a resurgence in demand for luxury goods in 2021.
Expanded economic activities in the tertiary industries were driven by an increase in demand for goods and services resulting in improved performances in the wholesale and retail trade sectors.
“The sector posted a positive performance of 6.1% following consistent contractions for the last four years. A similar observation was evident in the transport and storage sector, which jumped from a contraction of 22.7% to positive growth of 2.8% in 2021 relative to 2020,” Shimuafeni said.
Furthermore, the demand for hospitality services saw an increase in activities resulting in the hotels and restaurants sector, recording a growth of 10.4% during the period under review.
“Overall positive performance in tertiary industries were observed in all sectors with exception of financial and insurance and administrative and support services activities. However, both sectors are showing signs of improvement,” Shimuafeni said.