Q1 GDP growth slows

THE local economy was affected by the economic activities of the industrial countries, with the Gross Domestic Product growing at a much lower rate during the first quarter of 2005 than previously, the Bank of Namibia (BoN) has said.

GDP in Namibia grew at a lower rate of 2,5 per cent during the period under review – significantly less than the growth of 6,8 per cent witnessed during the same period in 2004, BoN Governor Tom Alweendo said in the bank’s quarterly report for January to March. All sectors of the economy, except those of fishing and manufacturing, contributed to the growth in GDP.Alweendo, however, added that despite the slower GDP growth, developments in the economy were favourable and the country was experiencing the lowest inflation rate since Independence.Year-on-year inflation slowed to 2,5 per cent in January from 4,3 per cent in December last year, and a low of 1,7 per cent was recorded for March, bringing the quarterly average rate to 2,3 per cent compared to 4,2 per cent in the corresponding quarter of 2004.All sectors of the economy, except those of fishing and manufacturing, contributed to the growth in GDP.Alweendo, however, added that despite the slower GDP growth, developments in the economy were favourable and the country was experiencing the lowest inflation rate since Independence.Year-on-year inflation slowed to 2,5 per cent in January from 4,3 per cent in December last year, and a low of 1,7 per cent was recorded for March, bringing the quarterly average rate to 2,3 per cent compared to 4,2 per cent in the corresponding quarter of 2004.