STAFF WRITER
THe Namibian economy has maintained a growth trajectory over the past 16 quarters thanks to positive stimulation from different sectors.
The positive growth was confirmed by the Bank of Namibia Director of Strategic Communications and International Relations,Kazembire Zemburuka in a statement released on Monday.
“During the first quarter of 2025, activity in the domestic economy expanded at a slower rate, with positive momentum maintained across most sectors. Year-on-year, real Gross Domestic Product (GDP)
growth moderated to 2.7 percent during the first quarter of 2025, from 4.8 percent registered
in the corresponding quarter of 2024,” Zemburuka said.
The apex bank spokesperson said the growth marked the sixteenth consecutive quarter of positive year-on-year growth in real GDP.
“The primary industry contracted, despite the steady rise in activity observed in the mining sector, as reflected by stronger uranium, zinc concentrate, and
gold output, partly countered by a decline in diamond production.
“Activity in the agricultural sector weakened, reflecting lower livestock marketing due to the reduced number of market- ready animals.
Crop output fell, with additional harvesting expected in the second quarter. In
the secondary industry, monitored indicators showed mixed performances, whereas construction activity displayed a modest uptick. Manufacturing output edged lower as cement and blister copper production showed considerable declines, sparked by demand challenges and operational dynamics,” Zemburuka said.
Accordingly output for beer and soft drinks, increased over the same period.
Electricity and water output inched slightly higher. The tertiary industry remained the key driver of growth during the quarter under review, with ongoing expansion in sectors such as health, finance, wholesale and retail trade as well as tourism, transport and communication,” he said.
On the expenditure side, growth was bolstered by strong performances in exports, government consumption and gross fixed capital formation.
The central bank also reported an annual growth in broad money supply edging up in the first quarter of 2025, supported by increases in both net foreign assets and domestic claims, supported by higher
demand for private sector credit extension. “The uptick in broad money supply (M2) during the quarter under review was largely attributed to a rise in domestic claims, specifically claims
on other non-financial corporations, along with an increase in net foreign assets of the depository corporations. Growth in Private Sector Credit Extension (PSCE) recorded a
moderate increase compared to the previous quarter, reflecting improved credit demand from businesses, underpinned by the prevailing lower inflation and easing monetary policy
environment. Additionally, money market rates edged lower following the reduction in the policy
rate,” Zemburika said.
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