Export earnings averaged N$7.8 billion in 3Q
Diamonds boost value
Volatile global commodity prices pose a threat to both domestic output and taxes.
Namibia’s export earnings averaged N$7.8 billion during the third quarter (3Q) of 2023, according to the Namibia Statistics Agency (NSA). During the first and second quarters, the value of exports averaged N$8.7 billion and N$8.5 billion, respectively. Year to date (January to September), export earnings averaged N$8.3 billion.
In September, the value of exports stood at N$7.8 billion, compared to N$7.4 billion and N$8.7 billion registered in August 2023 and September 2022, respectively.
Diamonds were Namibia’s largest exported commodity in September 2023, accounting for 22.4% of total exports, of which 4.7% were re-exports and were destined for Botswana, the United Arab Emirates and Belgium.
Meanwhile, the domestic economy expanded by 5.3% in the first quarter, while real gross domestic product (GDP) growth in the second quarter stood at 3.7%.
The Bank of Namibia (BoN) projects economic growth to moderate downwards to 3.3% in 2023, from 4.6% registered in 2022.
Besides the weak demand, high base effects from the diamond sector, which expanded by more than 45% in 2022 have a dampening impact on 2023 growth, the central bank said.
Growth was supported by the deployment of the Benguela Gem mining. The diamond mining sector is expected to grow by 5.5% and 9.7% in 2023 and 2024, respectively.
Risks
The Ministry of Finance projects the Namibian economy to grow by 3.5% in 2023, before slowing to 2.9% in 2024.
This is an upward revision from the forecasts in the main budget of 3.2% and 2.2% for 2023 and 2024, respectively.
The growth update considered expected higher output in the secondary and tertiary industries supported by strong demand for services.
Meanwhile, value addition in the primary industry is projected to trend lower due to reduced output than initially anticipated in the mining sector as well as the agriculture sector which is expected to be negatively affected by the ongoing drought.
Risks to the domestic economic outlook remain, although somewhat reduced. In this regard, volatile global commodity prices pose a threat to both domestic output and [email protected]
In September, the value of exports stood at N$7.8 billion, compared to N$7.4 billion and N$8.7 billion registered in August 2023 and September 2022, respectively.
Diamonds were Namibia’s largest exported commodity in September 2023, accounting for 22.4% of total exports, of which 4.7% were re-exports and were destined for Botswana, the United Arab Emirates and Belgium.
Meanwhile, the domestic economy expanded by 5.3% in the first quarter, while real gross domestic product (GDP) growth in the second quarter stood at 3.7%.
The Bank of Namibia (BoN) projects economic growth to moderate downwards to 3.3% in 2023, from 4.6% registered in 2022.
Besides the weak demand, high base effects from the diamond sector, which expanded by more than 45% in 2022 have a dampening impact on 2023 growth, the central bank said.
Growth was supported by the deployment of the Benguela Gem mining. The diamond mining sector is expected to grow by 5.5% and 9.7% in 2023 and 2024, respectively.
Risks
The Ministry of Finance projects the Namibian economy to grow by 3.5% in 2023, before slowing to 2.9% in 2024.
This is an upward revision from the forecasts in the main budget of 3.2% and 2.2% for 2023 and 2024, respectively.
The growth update considered expected higher output in the secondary and tertiary industries supported by strong demand for services.
Meanwhile, value addition in the primary industry is projected to trend lower due to reduced output than initially anticipated in the mining sector as well as the agriculture sector which is expected to be negatively affected by the ongoing drought.
Risks to the domestic economic outlook remain, although somewhat reduced. In this regard, volatile global commodity prices pose a threat to both domestic output and [email protected]
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