GDP contracts by 2.6 per cent in second quarter of 2019

The Gross Domestic Product (GDP) remains subdued in the second quarter of 2019, recording a contraction of 2.6 per cent, compared to the growth of 0.6 per cent recorded in the corresponding period of 2018.

This was revealed by the Namibia Statistics Agency (NSA)'s Statistician General, Alex Shimuafeni during a media conference on Thursday, explaining that real GDP for the second quarter in 2019 stood at N.dollars 25.5 billion compared to N$26.2 billion in 2018.

He noted that the sum of real value for sectors shrunk by N.dollars 670 million, of which the deterioration in the economy is observed across major sectors with more than a half of the sectors posting declines in real value added.

The major sectors include mining and quarrying which posted a declining growth of 20.2 per cent compared to the 34. 5 per cent growth in 2018.

Further, Agriculture and forestry growth declined to 28.1 per cent from 2.7 per cent in 2018.

Whilst, wholesale and retail sector posted a negative growth of -2.0 per cent compared to decline of 7.3 per cent and hotels and restaurants -2.6 per cent.

He further noted that moderate declines were recorded in public administration and defence; transport and communications; education and health that registered 2.7, 0.9, and 2.6 per cent, respectively.

On the positive note, he said other sectors posted positive performance during the quarter under review, manufacturing, electricity and water recorded improved performance posting growths of 2.7 per cent.

Improved performance is also observed in the financial intermediation and fishery sector, which posted growth of 0.6 per cent.

On the contrary, during the quarter under review imports rose faster recording N.dollars 19.7 million due to largely increase in importation of fuel, while exports decelerated to N.dollars 13.3 million, due reduction in export of diamonds.

GDP is a monetary measure of the market value of all goods and services produced in a period either quarterly or yearly of time, therefore, normal GDP estimates are commonly used to determine the economic performance of a whole country or region, and make international comparisons.

Source: Namibia Press Agency