Namibian economy declines

Windhoek – The Namibian economy recorded a decline of 1,2 per cent in the second quarter of 2016, compared to 7,0 per cent growth registered in the corresponding quarter of 2015.

“The negative growth is mainly attributed to declines in real value added recorded in construction; hotels and restaurants; and mining and quarrying,” said Statistician-General Alex Shimuafeni in a statement issued on Tuesday.

He said the poor performance in the construction sector is attributed to the value of buildings completed that recorded a decline of 42,7 per cent in real value added in the second quarter which runs from April to June, compared to the strong growth of 103 per cent recorded in the corresponding quarter of 2015.

Shimuafeni said the real value of construction by Government registered a slow growth of 6,1 per cent during the second quarter of 2016, compared to the strong growth of 68,6 per cent recorded in the same quarter of 2015.

“The performance in the hotels and restaurants sector, which is reflected in the number of bed nights and room nights sold, declined by 14,0 per cent and 14,4 per cent, respectively in the second quarter of 2016,” he said.

The poor performance in mining and quarrying is attributed to the diamond sub-sector that recorded a decline of 30,8 per cent in real value added in the period under review, compared to the decline of 12,1 per cent recorded in the corresponding quarter of 2015.

The electricity and water sector, on the other hand, recorded a strong growth of 25,7 per cent in real value added, compared to a 13,9 per cent growth recorded in the same quarter of 2015.

The strong performance is mainly attributed to the electricity sub-sector that recorded a strong growth of 32,9 per cent compared to the 16,9 per cent recorded in the corresponding quarter of 2015, he said.

“This is accredited to the sales of electricity of 22,6 per cent in the period under review and stood at 588 934 Kilowatts per hour (KWH); while imports of electricity recorded a decline of 3,9 per cent during the same quarter,” Shimuafeni said.

On the other hand, the water sub-sector recorded a decline of 0.8 per cent in real value added during the second quarter of 2016 in comparison to the 4,0 per cent that was recorded during the corresponding quarter of 2015.

The reduction is mainly attributed to the decline of 4,3 per cent recorded in water for human consumption during the second quarter of 2016. – Nampa