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Economy sees 4.7% growth in Q1 2024, driven by primary and tertiary industries

Economy sees 4.7% growth in Q1 2024, driven by primary and tertiary industries

The economic trajectory for the first quarter of 2024 has shown resilience with a growth rate of 4.7%, slightly down from 5.3% in the same period last year, according to the latest GDP statistics from the Namibia Statistics Agency (NSA).

According to the NSA, the primary sector, particularly ‘Mining, and quarrying’, played a pivotal role in driving economic expansion, recording a robust 6.6% growth spurred by diamond production. However, the uranium sub-sector saw a decline of 11.8%, contrasting with a significant increase of 27.4% in the first quarter of 2023.

In the tertiary sector, there was an overall improvement with a 4.7% growth in real value added. Key contributors included ‘Wholesale and retail trade’ (8.4% growth compared to 7.2% in Q1 2023), ‘Health’ (7.5% compared to 1.4% in Q1 2023), and ‘Financial services’ (5.3% compared to -7.3% in Q1 2023).

Conversely, the secondary sector experienced a more modest growth rate of 1.5% in real value-added, influenced by slower performances in ‘Electricity and water’ and Construction, which saw growth rates of 9.8% and 3.5% respectively, down from 32.9% and 26.8% in Q1 2023. Manufacturing, however, contracted by 1.4%, showing improvement from a 2.0% decline in the previous year.

Meanwhile, the NSA said on the demand side, private final consumption expenditure surged by 13.4%, contrasting sharply with a decline of 0.6% in Q1 2023. Government final consumption expenditure also grew by 4.1%, up from 0.4% in Q1 2023.

Gross Fixed Capital Formation (investment) expanded by 23.5%, driven by ongoing investment in oil and gas exploration, although this was a decrease from the 68% growth seen in Q1 2023. Exports of goods and services declined by 17.3%, while imports increased by 4.1%.

The NSA said despite challenges, including the decline in certain sectors and export figures, all sectors of the economy managed to achieve positive growth in real value added, underscoring overall economic stability and resilience.


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