Namibia’s economy expanded to N$64.8 billion in the second quarter of 2025, up from N$58.8 billion in the same period last year, according to the Namibia Statistics Agency (NSA).
Despite the increase in nominal terms, real growth slowed to 1.6% compared to 3.3% in the second quarter of 2024.
“Economic activities decelerated in the second quarter of 2025, recording 1.6% in real value added, a slower growth when compared to 3.3% registered in the same period of 2024. In nominal terms, the size of the Namibian economy was estimated at N$64.8 billion, an expansion of N$6 billion compared to the N$58.8 billion recorded in the corresponding quarter of 2024,” said NSA Statistician General and CEO, Alex Shimuafeni.
He explained that the slowdown was mainly driven by a contraction in secondary industries, which declined by 5.8% in real value added, largely due to a 9.7% slump in the manufacturing sector.
In contrast, primary industries improved slightly by 0.1% after a 2.7% decline in 2024, though agriculture and forestry (-3.5%) and fishing (-4.4%) weighed down overall performance.
Tertiary industries remained the main driver of growth, expanding by 3.9%, with education (5.6%), financial services (5.0%) and wholesale and retail trade (5.2%) leading the way, though at slower rates than the previous year. Public administration and defence grew by 3.7%.
“The performance during the quarter under review is mainly attributable to the tertiary industries that recorded a growth of 3.9% in real value added, compared to a 5.0% growth recorded in the corresponding period of 2024,” Shimuafeni said.
On the demand side, household spending came under pressure, with private final consumption falling by 7.2% compared to a 26.6% increase in 2024.
Government spending grew by 4.2%, supported by an increased public service workforce.
Gross fixed capital formation rose by 5.0%, driven by higher investment in machinery, transport equipment and construction.
External trade also provided a boost, with exports of goods and services rising by 18.5%, while imports contracted by 4.7%, helping narrow the external balance deficit.
“Moreover, Gross Fixed Capital Formation recorded a 5.0% increase during the quarter under review, relative to a decrease of 0.6% posted in the corresponding quarter of 2024 due to increase in investment of ‘Machinery and transport equipment’, and Construction activities,” he said.
