Namibia witnessed a significant increase in mining activity and substantial growth in the wholesale and retail trade sector, contributing significantly to economic growth over the past year, a new report shows.
According to PSG Wealth, the mining and quarrying sector recorded a 51.7% y/y growth attributed to substantial increases in metal ores mining and uranium mining, coupled with sustained investments in mineral exploration.
During the second quarter of 2023, there was a notable rise of 20.3% points, reaching 52.3% year-on-year in the mining and quarrying sector.
According to the report, the wholesale and retail trade sector posted a commendable 6.1% y/y growth, contributing significantly to Namibia’s economic revival in the past year.
Despite persistent drought conditions, the agriculture and forestry sectors demonstrated robust growth with a notable 19.9% y/y increase.
The report states that not all sectors have experienced the same level of success.
The manufacturing sector faced a notable decline, registering a negative growth of 8.7% y/y. This downturn could be attributed to various factors, including global economic uncertainties, supply chain disruptions, and fluctuations in demand for certain manufactured goods.
Similarly, the construction sector faced a significant setback, with a staggering 30.6% y/y contraction, highlighting challenges and disruptions in the industry.
The latest data from the Namibia Statistics Agency reveals a substantial real GDP growth of 7.2% year-on-year (y/y) in the third quarter of 2023, a significant leap from the upwardly revised 5.3% y/y in the second quarter of the same year.
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