The Namibia Statistics Agency (NSA) has released the country’s economic performance report for the second quarter of 2025, revealing a real GDP growth of 1.6 percent compared to 3.3 percent in the same period last year. The nominal size of the economy expanded to N$64.8 billion, up from N$58.8 billion in Q2 2024, signaling sustained economic activity despite challenges in some sectors.
Growth was predominantly driven by the tertiary industries, which recorded a 3.9 percent increase in real value added, supported by key sectors including wholesale and retail trade (5.2%), education (5.6%), financial services (5.0%), and public administration and defense (3.7%). These sectors, while growing less robustly than in 2024, remain central to the country’s economic stability.
In contrast, primary industries saw only marginal improvement, with a slight 0.1 percent growth following a 2.7 percent decline last year. This was tempered by declines in agriculture and forestry (down 3.5%) and fishing and fish processing (down 4.4%), linked to reduced livestock marketed and lower fish volumes landed.
Of concern is the secondary industries sector, which contracted by 5.8 percent in real value added, reversing a positive 2.0 percent growth in the previous year. This decline was mainly due to a 9.7 percent drop in manufacturing output, reflecting ongoing sectoral pressures.
On the demand side, private final consumption expenditure fell sharply by 7.2 percent, reversing a strong 26.6 percent growth seen in Q2 2024. This drop indicates reduced household consumption under current economic pressures. Meanwhile, government final consumption expenditure grew by 4.2 percent, benefiting from an increase in public service employment.
Encouragingly, gross fixed capital formation rose by 5.0 percent, driven by higher investments in machinery, transport equipment, and construction activities, signaling renewed business confidence and capital spending. Additionally, exports surged by 18.5 percent while imports declined by 1.6 percent, leading to a narrowing external balance deficit and enhancing the country’s trade position.
The NSA extends gratitude to all data contributors and invites feedback to improve future GDP estimates. Detailed publications are available on the NSA website.
This economic snapshot highlights Namibia’s resilience amid sectoral challenges, with the services sector and investment spending making critical contributions to growth, while manufacturing and primary industries face headwinds. Continued monitoring and strategic interventions will be essential to sustain and accelerate economic progress.
