Namibia’s economic growth decelerated to 3.7% in 2024, down from 4.4% in 2023, as reported in the latest Annual National Accounts released by the Namibia Statistics Agency (NSA). This slowdown is largely attributed to contractions in primary industries, which saw a decline of 1.8% compared to a strong 10% growth recorded in the previous year.
According to NSA Statistician-General Alex Shimuafeni, the agriculture, forestry, and fishing sectors were the primary contributors to this downturn, registering a 2.7% decline. Similarly, the mining and quarrying sector contracted by 1.2%, a stark contrast to the impressive 19.3% expansion observed in 2023. The diamond mining industry, in particular, experienced a 3.7% decrease in output, largely due to weakened global demand.
Despite these challenges, secondary industries showed resilience, recording a growth of 3% in 2024, up from 2.4% in the previous year. This improvement was driven by stronger performances in the manufacturing and construction sectors, which contributed positively to economic activity.
The tertiary sector remained a key driver of growth, expanding by 4.9%. Major industries within this sector, including transport and storage, wholesale and retail, healthcare, financial and insurance services, as well as public administration and defence, all registered stronger performances compared to the previous year.
On the demand side, private final consumption expenditure accounted for 79.3% of the country’s gross domestic product (GDP). In real terms, private consumption grew by 13.3% in 2024, a significant acceleration from the 4.7% recorded in 2023. This surge in consumer spending was reflected in the robust performance of the wholesale and retail trade sectors, alongside an increase in imports of final goods.
Shimuafeni highlighted the importance of the Annual National Accounts estimates in providing essential indicators for assessing Namibia’s economic trajectory. These figures offer valuable insights into the country’s economic strengths and vulnerabilities, shaping policy decisions aimed at sustaining long-term growth.
