Growth decelerates as key sectors falter in early 2025

In the first quarter of 2025, the size of the economy reached N$62.4 billion in nominal terms, reflecting an expansion of N$4 billion compared to N$58.5 billion in the same period of 2024.In real terms, the domestic economy grew by 2.7% in the first quarter of 2025, although this marked a slight slowdown compared to the 4.8% growth recorded in the same quarter of 2024, according to the Namibia Statistics Agency (NSA).Growth was primarily driven by the tertiary industries, which registered a 5.1% increase in real value added during the first quarter of 2025. “This was an improvement on the 4.8% growth recorded in the same period in 2024. Key contributors to the tertiary industries include sectors such as health (11.4%), wholesale and retail trade (6.5%), and financial services activities (6%),” the NSA said.The secondary industries, however, experienced slower growth of 0.7% in real value added, compared to a 0.9% increase recorded in the first quarter of 2024. “The performance is primarily due to the manufacturing sector, which registered a decline of 1.7%, compared to the 0.9% decrease witnessed in the same quarter of 2024,” the NSA noted.“On the other hand, economic activity slowed in the primary industries, registering a decline of 3.1% in real value added, compared to a 5.9% increase recorded in the first quarter of 2024,” it added.According to the NSA, the poor performance is attributed to the ‘agriculture and forestry’ and ‘fishing and fish processing on board’ sectors, which recorded declines of 20.1% and 8.7% in real value added, respectively. “The performance is primarily due to a significant reduction in the total number of animals marketed and a decrease in the volume of fish landed.”On the demand side, private final consumption expenditure posted a marginal decline of 0.7%, compared to a staggering 24.6% recorded in the corresponding quarter of 2024. Household consumption slowed during the quarter under review.“However, government final consumption expenditure maintained a positive performance, registering 5.8% growth during the first quarter of 2025, compared to 3.2% growth in the corresponding quarter of 2024. This performance is attributable to the increased number of public servants,” the NSA said.

Growth decelerates as key sectors falter in early 2025

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Growth decelerates as key sectors falter in early 2025

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