Chart of the Week

Tannan Groenewald
  • 5 Days Ago
Namibia's real GDP grew by 3.7% year-on-year in 2024, with the overall tax contribution to GDP reaching its highest level on record, accounting for 8.9% of the real GDP value of N$157.5 billion (constant 2015 prices).



The tax contribution to real GDP grew by 9.5% in 2024, surpassing 2023's all-time high, driven by significant increases in consumption tax payments as well as improved tax collection by the Namibia Revenue Agency.



Real private consumption expenditure contributed 63% of real gross domestic expenditure, up from 56% in 2023, as real household consumption increased by 13% in 2024.



With household consumption driving growth from the demand side, the real consumption of food, beverages & tobacco rose by 17%, clothing and footwear by 19%, and other goods by 42%. However, real consumption of housing and utilities declined by 6%, while transport fell by 3%. Direct purchases abroad by households also surged by a staggering 36%.



Much of this is attributed to changes in personal income tax brackets and the subsequent allocation of over-deductions to taxpayers near the end of 2024, with all current taxpayers now receiving an additional N$750 to N$1,542 in disposable income per month.



As a result, the wholesale and retail trade sector recorded its second-fastest growth rate on record, expanding by 9.1%, just marginally below the 9.2% growth recorded in 2004. Assuming no quarterly revisions, this translates to an annual Q4 growth rate of 18.7% – a significant increase from the 4.5% recorded in Q4 2023.



The logistics sector emerged as the fastest-growing sector in 2024, achieving an impressive 11.4% growth rate as Namibia handled 14.3 million tonnes of cargo – up 10.5% y/y – with the storage subsector surpassing its 2023 all-time high real value addition to grow by a further 20.1% y/y.



Namibia's tertiary industries contributed 57.9% of real GDP in 2024, while secondary industries recorded their lowest-ever share at 14.5%. However, all broad secondary and tertiary sectors recorded positive growth rates, making up for the contractions observed in Namibia's primary sectors