Namibia’s economy expanded by N$4 billion in the first quarter of 2025, reaching a nominal size of N$62.4 billion, up from N$58.5 billion recorded during the same period in 2024.
This reflects a 2.7% increase in real terms, according to data released by the Namibia Statistics Agency (NSA).
Statistician-General and NSA CEO Alex Shimuafeni attributed the growth primarily to stronger activity in the tertiary industries, which recorded a 5.1% rise in real value added.
This compares with 4.8% growth in the same period last year.
“The performance is mainly attributable to the tertiary industries that recorded a growth of 5.1% in real value added posted in the first quarter of 2025, compared to 4.8% growth recorded in the corresponding period of 2024,” said Shimuafeni.
Leading the tertiary sector were the Health sector, which grew by 11.4%, and notable contributions from Financial Services, Wholesale and Retail Trade, and Administrative and Support Services.
However, performance in other sectors was mixed. The secondary industries contracted by 0.7%, largely due to a 1.7% decline in manufacturing.
The primary industries also recorded a downturn, with real value added declining by 3.1%. Agriculture and Forestry fell sharply by 20.1%, while Fishing and Fish Processing on board decreased by 8.7%, both hit by lower animal marketing and reduced fish volumes.
“The poor performance is attributed to the ‘Agriculture and forestry’ and ‘Fishing and Fish Processing on board’ sectors, that registered declines in real value added of 20.1% and 8.7%, respectively,” Shimuafeni said.
On the demand side, private final consumption declined by 0.7% during the first quarter, following a sharp 24.6% increase in the same period of 2024, indicating reduced household spending.
Government consumption grew by 5.8%, which the NSA linked to an increase in public sector employment.
Gross Fixed Capital Formation rose by 3.8%, driven by increased investment in machinery, transport equipment, and construction.
“Gross Fixed Capital Formation recorded a 3.8% surge during the quarter under review relative to a growth of 1.1% posted in the corresponding quarter of 2024 due to increase in investment of ‘machinery and transport equipment’, and construction activities,” said Shimuafeni.
Exports of goods and services improved by 15.6%, while imports rose by 6.2%, resulting in a narrower external balance deficit.
The NSA described this as a positive development for the economy.
