Business Reporter
DURING the third quarter of 2024 (Q3), the size of the Namibian economy stood at N$61.6 billion in nominal terms, reflecting an expansion of N$5.3 billion from N$56.3 billion recorded in the same period of 2023.
In real terms, the domestic economy grew by 2.8% during the third quarter of 2024 compared to 3.1% growth registered in the parallel quarter of 2023.
This is according to statistics released by the Namibia Statistics Agency (NSA). Alex Shimuafeni, Statistician-General at the NSA, explained that the growth in the economy was primarily driven by the tertiary industries, which saw a 4.9% increase in real value added during the third quarter of 2024.
This represents an improvement compared to the 1.9% growth recorded in the same period of 2023. Key performing sectors during the review period were Health (16.0%), ‘Transport and Storage’ (7.9%), and Financial Service Activities (7.1%).
The secondary industries experienced slower growth of 1.5% in real value added, compared to a 4.4% increase in the third quarter of 2023. This was mainly due to the Manufacturing and Construction sectors, which grew by 2.6% and 1.6%, compared to declines of 9.4% and 7.3% recorded in 2023, respectively.
On the other hand, primary industries recorded a decline of 4.4% in real value added, contrasting with a 13.8% growth recorded in the same quarter of 2023. This downturn was driven by the ‘Mining and Quarrying’ and ‘Agriculture and Forestry’ sectors, which posted declines of 6.7% and 6.3%, respectively. The poor performance is attributed to reduced livestock marketed, stemming from lower stock levels and the impact of drought, along with a decrease in diamond production.
On the demand side, Private Final Consumption Expenditure in real terms grew by 0.5%, a slower pace compared to the 1.0% increase recorded in the same period of 2023. However, Government Final Consumption Expenditure rose by 5.7%, surpassing the 0.7% decline witnessed in 2023, mainly due to higher public sector compensation.
Gross Fixed Capital Formation declined by 7.2%, in contrast to the substantial growth of 92.8% observed in the same quarter of 2023. Exports of goods and services expanded by 19.3%, outpacing the 7.3% increase recorded in the import of goods and services, leading to a reduction in the external balance of goods and services deficit.
UPWARD TRAJECTORY: File photo for illustrative purposes only.