Namibia’s economy recorded a steady growth rate of 2.8% in the third quarter of 2024, driven by robust performance in the tertiary industries, according to data released by the Namibia Statistics Agency (NSA). This growth, although slightly below the 3.1% achieved in the same period in 2023, highlights the resilience of the country’s economic framework amidst ongoing global and regional challenges.
Statistician General Alex Shimuafeni, in his statement, reported that the Namibian economy expanded to N.dollars 61.6 billion (approximately $347.7 million) during Q3 2024, reflecting an increase from N.dollars 56.3 billion (about $317.8 million) recorded in the corresponding period last year. This translates to a nominal growth of N.dollars 5.3 billion (around $299.2 million) over the year.
“The growth was primarily driven by the tertiary industries, which saw a 4.9% increase in real value added during the third quarter of 2024. This marks a significant improvement compared to the 1.9% growth recorded in the same period of 2023,” Shimuafeni stated.
The tertiary industries, which include services such as retail, transport, telecommunications, and financial activities, emerged as the cornerstone of Namibia’s Q3 economic performance. Their 4.9% growth underscores a rebound in consumer activity, increased trade, and stronger demand for services compared to last year. Analysts note that improved connectivity, rising consumer confidence, and sustained investment in logistics and financial services contributed to the sector’s robust expansion.
However, the broader economy’s slower growth compared to Q3 2023 reflects ongoing challenges in primary and secondary sectors. The primary sector, dominated by mining, agriculture, and fishing, has faced hurdles due to fluctuating commodity prices, weather irregularities, and global demand uncertainties. Similarly, the secondary sector, which includes manufacturing and construction, has struggled with rising input costs and subdued infrastructure activity.
Despite these challenges, the NSA’s report reflects Namibia’s capacity to weather economic pressures. The steady 2.8% growth highlights a cautiously optimistic trajectory, even as external factors such as geopolitical tensions, global inflation, and regional energy concerns persist.
Economists attribute Namibia’s modest economic expansion to proactive fiscal policies, strategic investments, and the gradual recovery of key domestic industries. Notably, public sector initiatives aimed at boosting service delivery and promoting private sector partnerships have played a role in stabilizing growth.
While Namibia’s growth rate in Q3 2024 falls short of its previous year’s performance, it aligns with broader economic trends across Southern Africa. Many countries in the region have faced similar challenges, including rising costs, supply chain disruptions, and climate-related obstacles impacting primary industries. Nevertheless, the relative strength of Namibia’s tertiary sector places it on a favorable footing compared to some regional counterparts.
Shimuafeni emphasized that sustaining the gains in the services sector, alongside renewed focus on infrastructure development and industrial diversification, will be critical for maintaining long-term economic stability.
“This growth rate that we are observing underscores the importance of strengthening sectors that drive economic resilience. While the tertiary industries have led the way, efforts to bolster primary and secondary sectors remain essential for balanced growth,” he added.
Namibia’s government continues to prioritize initiatives aimed at economic diversification, including investments in renewable energy, technology, and value-added industries. Coupled with improved trade relations and targeted policy interventions, these efforts are expected to unlock new growth opportunities in the coming quarters.
The 2.8% GDP growth in Q3 2024 reflects Namibia’s steady economic progress amidst adversity. As the nation looks ahead, strengthening key sectors, enhancing policy coordination, and addressing structural challenges will be pivotal in sustaining and accelerating economic gains.
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