Economic growth slowing

NAMIBIA’S economic growth in 2005 points towards a slowdown when compared to the growth registered in 2004.

Official figures recently released by the Central Bureau of Statistics (CBS) in its Preliminary National Accounts showed that the economy registered a growth of 3,2 per cent last year, compared to 6 per cent in 2004. The National Planning Commission – under which the CBS falls – was quick to point out that the results published in the report were preliminary and not yet conclusive.”The preliminary estimates are based on partial information and will be subjected to revisions as valuable information becomes available from the data sources,” said NPC Director General Helmut Angula.Revised estimates are expected in August when the Annual National Accounts Report is produced.Reasons for the decline could be the primary economic sector which suffered a blow, shrinking by 0,5 per cent last year as opposed to a boom of 13,1 per cent growth in 2004.The mining sector recorded a decline of 1,8 per cent in 2005 compared to a growth of 36,5 per cent in 2004, while the fishing sector continued its downward trend, dropping by 17,4 per cent.Manufacturing also registering an overall decline of 2,6 per cent compared to a growth of 6,7 per cent in 2004.However, it was not all bad news for some sectors, as secondary and tertiary industries recorded a growth of 0,1 per cent and 6,0 per cent respectively.The agricultural sector grew by 12,6 per cent while construction went up to 4,1 per cent in 2005 from 1,2 per cent growth in 2004.Electricity, water, transport and communications were other sectors that registered development.The sector of hotels, restaurants, wholesale and retail shops saw a slight decline of 0,1 per cent in 2005.The CBS attributes this decrease to the strengthening Namibian dollar against major currencies and the increase of oil prices, among other reasons.The National Planning Commission – under which the CBS falls – was quick to point out that the results published in the report were preliminary and not yet conclusive.”The preliminary estimates are based on partial information and will be subjected to revisions as valuable information becomes available from the data sources,” said NPC Director General Helmut Angula.Revised estimates are expected in August when the Annual National Accounts Report is produced.Reasons for the decline could be the primary economic sector which suffered a blow, shrinking by 0,5 per cent last year as opposed to a boom of 13,1 per cent growth in 2004. The mining sector recorded a decline of 1,8 per cent in 2005 compared to a growth of 36,5 per cent in 2004, while the fishing sector continued its downward trend, dropping by 17,4 per cent.Manufacturing also registering an overall decline of 2,6 per cent compared to a growth of 6,7 per cent in 2004.However, it was not all bad news for some sectors, as secondary and tertiary industries recorded a growth of 0,1 per cent and 6,0 per cent respectively.The agricultural sector grew by 12,6 per cent while construction went up to 4,1 per cent in 2005 from 1,2 per cent growth in 2004.Electricity, water, transport and communications were other sectors that registered development.The sector of hotels, restaurants, wholesale and retail shops saw a slight decline of 0,1 per cent in 2005.The CBS attributes this decrease to the strengthening Namibian dollar against major currencies and the increase of oil prices, among other reasons.