Economy on life support

08 April 2021 | Economics

Windhoek ∙ [email protected]


The impact of the Covid-19 pandemic, coupled with the ongoing recession, sucked more than N$5 billion out of the economy last year.

Preliminary data released by the Namibia Statistics Agency (NSA) yesterday, showed the country had a nominal gross domestic product (GDP) of about N$176.3 billion in 2020, compared to nearly N$181.6 billion the previous year. This is the lowest nominal GDP since 2017.

Namibia’s real GDP – measured at the constant prices of 2015 to allow for, among others, the impact of inflation – came in at nearly N$133.7 billion. Compared to 2019, this is a drop of around N$11.6 billion. This is the lowest real GDP since 2013.

Namibia’s economy grew by nearly -8% in 2020, Namibia’s deepest contraction on record. Growth was worse than the forecast of the Bank of Namibia (BoN) in February and finance minister Iipumbu Shiimi in his budget speech last month. Both the BoN and Shiimi hoped for a contraction of 7.3%.

Average annual economic growth since 2016 now stands at -1.7%.

Out of pocket

The NSA’s preliminary national accounts for 2020 show how economic woes impacted Namibians.

Compensation received by employees totalled N$80.35 billion, some N$661 million or 0.8% less than in 2019.

Gross national income (GNI), the total amount of money earned by a nation's people and businesses, came in at about N$173.3 billion – around N$3.8 billion or 2.1% down from 2019.

Real GNI per capita for 2020 was N$56 284, down N$4 847 or 7.9% from 2019. This is the lowest real GNI per capita in the NSA’s rebased records going back to 2013 and a drop of nearly 12% from its peak of N$63 921 in 2015.

Gross national disposable income fell by about N$400 million or 0.2% year-on-year (y/y) to about N$195.5 billion in 2020.

Private consumption expenditure at current prices last year amounted to about N$121.5 billion, nearly N$5.5 billion less than in 2019.

Private consumption expenditure at constant 2015 prices fell by about N$10.2 billion or 9.3% y/y and was the lowest since 2014.

Net investment, or gross fixed capital formation, at constant 2015 prices, plummeted by more than N$3.7 billion or 15.9% to some N$19.7 billion, the lowest on the NSA’s rebased records. Net investment in Namibia has been nose-diving since 2015.

Knocked out
The contribution of four sectors to Namibia’s nominal GDP fell by more than N$1 billion y/y.

Manufacturing suffered the biggest blow, with its GDP contribution falling by about N$3.1 billion to nearly N$19.4 billion, the lowest since 2016. It contributed 11% to the nominal GDP compared to 12.4% in 2019.

The contribution of both wholesale and retail trade, as well as hotels and restaurants (a proxy for tourism) shrunk by about N$1.2 billion y/y. Wholesale and retail’s contribution of about N$17 billion represented 9.6% of the nominal GDP (2019: 10.0%), while hotels and restaurants contributed nearly N$2.6 billion or 1.4% (2019: 2.1%). For both these sectors, it is the lowest nominal GDP contribution on the NSA’s rebased records.

Transport and storage contributed about N$4.5 billion to the nominal GDP, some N$1.1 billion down from 2019. Its GDP share dropped from 3.1% to 2.6%, the lowest since 2013.

Financial and insurance services activities missed the N$1-billion mark by an inch. It pumped nearly N$11.7 billion into the economy in 2020, about N$989 million down from 2019. Its GDP contribution declined from 7% to 6.6%.

In terms of real GDP, the sectors recorded the following growth: Manufacturing -19.6%; wholesale and retail trade -11.7%; transport and storage -22.4%; and financial and insurance services activities -11.7%. Tourism’s y/y growth came in at a surprising -33.1%, as the BoN still forecast -55% barely two months ago.

Green shoots

Agriculture blossomed last year: Livestock farming contributed nearly N$6.3 billion to the nominal GDP, an increase of nearly N$1.1 billion y/y. Crop farming and forestry’s contribution rose by some N$2.2 billion to nearly N$5.2 billion. Livestock’s contribution to the nominal GDP rose from 2.9% to 3.5%, while crop farming and forestry’s was up from 1.6% to 2.9%.

Similar News

 

Construction sector recovery to take a while

22 hours ago | Economics

Windhoek ∙ [email protected] For the past five years, the construction sector continued with a downward trend. The sector recorded negative growth rates of 41.1%,...

National Consumer Protection Policy launched

3 weeks ago - 05 October 2021 | Economics

Windhoek ∙ [email protected] The National Consumer Protection Policy 2020-2025 and the Namibia GS1 License was launched on Wednesday in Windhoek.According to the Minister of...

Economy loses billions due to shipping constraints

1 month - 21 September 2021 | Economics

Windhoek ∙ [email protected] For the month July 2021, the Namibian economy lost about N$4.6 billion in potential export earnings. Statistics released by the...

Sea freight grapples with container shortage

1 month - 18 September 2021 | Economics

Benoit Pleegrin Global sea freight was severely disrupted by the Covid crisis but is now recovering and prompting a boom new container ship orders...

New global opportunities fund for locals

1 month - 14 September 2021 | Economics

Arysteq Asset Management recently launched a first of its kind global equity fund for Namibia.The Arysteq Global Opportunities Fund was established late in 2020...

Minimumloon vandag in die kollig

1 month - 07 September 2021 | Economics

Swakopmund Die ministerie van arbeid voer vandag samesprekings oor die voorgestelde nasionale minimumloon in die ouditorium van die ministerie van visserye en mariene hulpbronne...

Construction activities picking at the coast

1 month - 02 September 2021 | Economics

Windhoek ∙ [email protected] The composite index of building plans completed (Windhoek, Swakopmund, Walvis Bay and Ongwediva) for June 2021 increased by 10.0% on monthly...

Bright business prospects in the mining sector

1 month - 31 August 2021 | Economics

Windhoek ∙ [email protected] In 2020, it was only the mining and quarrying sector that registered positive growth in terms of investment increasing by 15.9%...

Rail cargo transportation slipped into a decline

2 months ago - 10 August 2021 | Economics

Windhoek ∙ [email protected] During June 2021, Namibia transported 975 708 tonnes of cargo through rail, road, air and sea, compared to 810 940 tonnes and...

Namibia’s construction sector still on mute

2 months ago - 31 July 2021 | Economics

Windhoek ∙ [email protected] delivery was one of the challenges pointed out in the recently released First National Bank (FNB) residential property report.According to the report,...

Latest News

MICT's say on SIM card...

4 hours ago | Technology

Following government’s policy directive that all SIM cards in Namibia must be registered, the Ministry of Information and Communication Technology (MICT) said that after consultations...

Supatronix Doubles Squash League

4 hours ago | Sports

This year saw Buccaneers Club introduce a new event.The Supatronix Doubles league, commenced on 13 October. With the short space of time left to the...

SBN’s Geises top of the...

21 hours ago | Banking

Standard Bank Namibia Holdings chief executive Mercia Geises features in the 17th position on the list of 50 women CEOs leading corporate Africa.Africa.com undertook a...

Pastels in the spotlight at...

21 hours ago | Art and Entertainment

Various artists are currently displaying their pastel artwork at the Fine Art Gallery in Swakopmund. These artists include Paul Dixon, Werner Schröder, Rosemarie Kuchling, Paul...

CATS programme beneficial

22 hours ago | Education

Manica Namibia has been affiliated with the Commercial Advancement Training Scheme (CATS) programme since 2005, and has had over 39 intakes, with an impressive pass...

Construction sector recovery to take...

22 hours ago | Economics

Windhoek ∙ [email protected] For the past five years, the construction sector continued with a downward trend. The sector recorded negative growth rates of 41.1%,...

Getooi teen kanker

1 day - 26 October 2021 | Events

Walvisbaai • [email protected] Die Walvisbaai-tak van die Kankervereniging van Namibië (CAN) het ’n spoggerige kuier, uitstappie en fietsrit by die Atlantis-sportklub op...

Kry jou tuingereedskap gereed ...

1 day - 26 October 2021 | Local News

Swakopmund • [email protected] Die Namibian Community Skills Development Foundation (Cosdef) gaan op 6 November die eerste varsgroentemark en ook ’n landbouprojek by...

Grumpy’s fishing report

1 day - 26 October 2021 | Fishing

The sand sharks are in the shallows which in turn brings the bigger predators closer too. A lot of anglers, including even the most...

Load More