Nam Economy Slowed Down in Q3 of 2014

The Namibian economy slowed down in the third quarter of 2014, registering a growth of 2.3 percent compared to a g growth of 14.8 percent in the corresponding quarter of 2013, according to the Namibia Statistics Agency (NSA). The slow growth during the third quarter emanated from the secondary and primary industries that recorded declines, while tertiary industry expanded.

The NSA says the slowdown in economic activities can be attributed to declines in the performance of sectors such as mining and quarrying at 11.5 percent, manufacturing at 10.8 percent, and fishing at 25.8 percent.

“The poor performance recorded in the mining and quarrying sector is ascribed to the declines in the subsections of uranium, metal ores and other mining and quarrying. The uranium subsector is estimated to have recorded a poor growth of 47.5 percent in real value added, which is a decline of 5.9 percent in the corresponding quarter of 2013. This poor performance can be attributed to depressed market prices. Metal ores and other mining and quarrying are estimated to have decline by 7.3 percent and 64.5 percent in real value added. On the other hand, the diamonds subsector is estimated to have marginally expanded by 0.6 percent in real value added compared to the growth of 9.7 percent of the preceding year,” stated the NSA.

The manufacturing sector is estimated to have registered a decline in real value added by 10.8 percent compared to an increase of 13.4 percent of the preceding year. The poor performance is mainly reflected in the subsections of fabricated metals, diamond polishing and cutting and fish processing that are estimated to have declined by 38.8 percent, 26.0 percent and 17.3 percent, respectively, during the period under review. Furthermore, subsectors of basic non-ferrous metals, beverages, chemical and chemical products and grain mill products are estimated to have contracted by 6.8 percent, 2.9 percent, 5.3 percent, and 17.7 percent, respectively.

On the other hand, the construction sector is estimated to have expanded by a slower growth of 23.3 percent compared to 55.5 percent of the previous year. This slow growth emanated from a slowdown in general government construction. Water and electricity is estimated to have expanded by a g growth of 7.3 percent in real value added compared to a decline of 5.4 percent in the preceding year. The g growth is due to reduction in intermediate consumption, which is reflected in a 7.0 percent decline in imports as a result of good rains in the catchment areas.

Despite the negative expansion in the primary and secondary industries, the economy showed resilience and was able to ride on the back of a g and buoyant tertiary industry.

Increase in the sales of vehicles, clothes and furniture pushed the growth in the wholesale and retail sector, which is estimated to have expanded by a slow growth of 14.3 percent in real value added compared to a g growth of 21.2 percent of the preceding year.

Source : New Era