Economy expands 1.6%, grows to N$64.8 billion
Namibia's economic growth slowed significantly in the second quarter of 2025, with real value added expanding by 1.6%, marking a notable decline from the 3.3% growth recorded in the corresponding period of 2024, the Namibia Statistics Agency (NSA) said.
Despite the slower pace, the economy's nominal size reached N$64.8 billion, representing an increase of N$6 billion compared to the N$58.8 billion registered in the second quarter of the previous year.
The country's economic performance during the quarter was primarily supported by tertiary industries, which recorded growth of 3.9% in real value added, albeit lower than the 5% expansion achieved in the same period of 2024. Several key sectors within this category demonstrated resilience, with education services showing particularly strong performance at 5.6% growth, a marked improvement from the 1% recorded in the previous year, according to the NSA.
Primary industries demonstrated a slight improvement, recording a modest 0.1% increase in real value added, a notable turnaround from the 2.7% decline experienced in the second quarter of 2024. However, this marginal performance masks underlying challenges within key sectors.
The agriculture and forestry sector contracted by 3.5%, whilst fishing and fish processing on board activities declined by 4.4%. These declines were attributed to a significant reduction in the total number of animals marketed and a decrease in the volume of fish landed during the quarter, the NSA noted.
On the demand side, private final consumption expenditure faced considerable pressure, registering a sharp decline of 7.2% during the period under review. This represents a dramatic reversal from the substantial 26.6% growth recorded in the parallel quarter of 2024, reflecting the mounting challenges facing household consumption.
Government final consumption expenditure, however, maintained its positive trajectory, increasing by 4.2% compared to the 2.6% growth registered in the corresponding quarter of 2024. This improvement was attributed to an increased number of public servants on the government payroll.
Despite the slower pace, the economy's nominal size reached N$64.8 billion, representing an increase of N$6 billion compared to the N$58.8 billion registered in the second quarter of the previous year.
The country's economic performance during the quarter was primarily supported by tertiary industries, which recorded growth of 3.9% in real value added, albeit lower than the 5% expansion achieved in the same period of 2024. Several key sectors within this category demonstrated resilience, with education services showing particularly strong performance at 5.6% growth, a marked improvement from the 1% recorded in the previous year, according to the NSA.
Primary industries demonstrated a slight improvement, recording a modest 0.1% increase in real value added, a notable turnaround from the 2.7% decline experienced in the second quarter of 2024. However, this marginal performance masks underlying challenges within key sectors.
The agriculture and forestry sector contracted by 3.5%, whilst fishing and fish processing on board activities declined by 4.4%. These declines were attributed to a significant reduction in the total number of animals marketed and a decrease in the volume of fish landed during the quarter, the NSA noted.
On the demand side, private final consumption expenditure faced considerable pressure, registering a sharp decline of 7.2% during the period under review. This represents a dramatic reversal from the substantial 26.6% growth recorded in the parallel quarter of 2024, reflecting the mounting challenges facing household consumption.
Government final consumption expenditure, however, maintained its positive trajectory, increasing by 4.2% compared to the 2.6% growth registered in the corresponding quarter of 2024. This improvement was attributed to an increased number of public servants on the government payroll.
