28 Mar 2019 16:30pm
WINDHOEK, 28 MAR (NAMPA) The domestic economy posted a contraction of 0.1 per cent in 2018, which indicated a slow recovery in activities, compared to the previous years negative 0.9.
This was revealed by the Chief Executive Officer (CEO) of the Namibia Statistics Agency (NSA), Alex Shimuafeni when he presented the Preliminary National Accounts here on Thursday.
He said the main industries driving this weak performance in Gross Domestic Product were the secondary and tertiary industries.
The downward trajectory in 2018 for the tertiary industry continues to record a contraction in real value added of 2,4 per cent compared to a decline of 1,6 per cent in 2017, he said.
Shimuafeni added that the subdued performance in the tertiary industry is witnessed across major sectors of the industry, except for financial intermediation such as real estate and business service public administration.
Sectors such as hotels and restaurants, wholesalers and trade, repairs as well as transport and communications, recorded declines.
He went on to say that equally poor performances were observed in the health and education sectors that recorded contractions of 3,1 and 2,9 per cent respectively, due to the government fiscal consolidation policy and subdued demand for private and education services.
The poor performance in the services sectors is an overall indication of weak domestic consumer appetite which remained suppressed due to a reduced per-capita real income, job losses and a highly indebted households, said Shimuafeni.
He further said growth continued to remain weak for a third consecutive year in the secondary industry due to the construction sector that posted a decline of 26.3 per cent, negative 25,0 per cent and negative 18,3 per cent for 2016, 2017 and 2018 respectively.
The poor performance was attributed to the drop in investment of government construction that registered reduction in real value added of 23,4 per cent compared to 29,6 per cent in 2017.