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ANNUAL NATIONAL ACCOUNTS2018 Namibia Statistics Agency

P.O. Box 2133, FGI House, Post Street Mall,Windhoek, Namibia

Tel: +264 61 431 3200Fax: +264 61 431 3253

Email: info@nsa.org.nawww.nsa.org.na

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ANNUAL NATIONAL ACCOUNTS

2018

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MISSION STATEMENT

In a coordinated manner we produce and disseminate relevant, quality and timely statistics that are fit-for-purpose in accordance with international standards and best practice

VISION STATEMENT

Be a high performance institution in statistics delivery

CORE VALUES

Performance

Integrity

Service focus

Transparency

Accuracy

Partnership

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PREFACE

This publication contains time series of main aggregates for the period 2013 - 2018, both at annual and quarterly current and constant prices. Back-casted data from 1980 to 2012 are not included but shall be made available together with Preliminary National Accounts 2019 on our website.

This publication presents estimates of National Income, savings, and expenditure on GDP, Gross Fixed Capital Formation, General Government and External Transactions. The series has been re-referenced to 2015 base year from the 2010. Additionally, new data sources such as the communal sector census of agriculture 2013/14 and value added tax data have been used which caused revision in the series. The incorporation of these data sources as well as re-referencing, incorporate improvements in the methodology, coverage and quality of the national accounts. This revision is in line with best international practice because it provides more accurate statistics needed for informed decision making.

Year on year, the domestic economy posted a marginal growth 0.3 percent relative to the contraction of 0.1 percent in real terms. The improved performance is observed in the secondary industries that recorded a growth in real value added of 0.1 percent in real value added compared to a steeper contraction of 7.0 percent recorded in 2017.

The Secondary industries improved performance is ascribed to the recovery in Manufacturing and “Water and Electricity” sectors that recorded growth of 0.3 percent and 6.6 percent compared to a declines of 1.5 percent and 14.9 percent in real value added, respectively.

The recovery in the Manufacturing sectors is attributed to increases in economic activities in the food processing subsectors such as Beverages and “Other food products” that posted growth of 4.7 percent and 5.1 percent in real value added, respectively.

The Primary industries performances slowed, posting a growth of 8.4 percent compared to a strong growth of 11.0 percent in real value added in 2017. The slow growth can be attributed primarily to performance in Agriculture that recorded a contraction of 2.0 percent compared to a strong growth of 6.9 percent in real value added in 2017.

However, despite these improved and slow performances being observed in the Secondary and Primary industries, the Tertiary industries performance took a turn for the worse. The Tertiary industries performance decelerated further, recording a contraction of 1.6 percent compared to a decline of 0.1 percent in real value added registered in 2017.

To summarise, the economy registered a marginal growth of 0.3 percent in real GDP relative to a contraction of 0.1 percent registered in 2017. This shows an improvement in economic activities, relative to the previous year, however, the activities remain supressed in the Tertiary sector.

In conclusion I would like to under-score the overriding importance of the timely delivery of data to the Namibia Statistics Agency (NSA), without which the compilation of timely and accurate national accounts cannot proceed.

I would, therefore, like to take this opportunity to urge all data providers to timely transmit data to the NSA and in the same manner, thank all Government and Private Institutions who

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have assisted the NSA staff in meeting their data collection requirements.

The NSA welcome views and comments of users, to help us to improve the quality of the national accounts estimate in Namibia.

……………………………………… Alex Shimuafeni Statistician-General & CEO

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TABLE OF CONTENT PREFACE ........................................................................................................................... 3 1. INTRODUCTION .................................................................................................... 7 2. GROSS NATIONAL INCOME AND GROSS NATIONAL DISPOSABLE INCOME ............................................................................................................................. 8 3. SAVINGS AND INVESTMENT .............................................................................. 7 4. INFLATION AND GDP DEFLATOR ..................................................................... 8 5. GENERAL GOVERNMENT INCOME, EXPENDITURE AND SAVINGS ....... 10 6. INDUSTRIES SHARE AND PERFORMANCE ................................................... 11 7. EXPENDITURE ON GDP ..................................................................................... 16 8. QUARTERLY SECTORAL ANALYSIS .............................................................. 18

TECHNICAL NOTE ........................................................................................................................................... 45

LIST OF TERMS AND DEFINITION ................................................................................................................... 51

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LIST OF TABLES

TABLE A GROSS DOMESTIC PRODUCT AND GROSS NATIONAL INCOME ............................................................................... 19 TABLE B NATIONAL DISPOSABLE INCOME AND SAVINGS ................................................................................................ 20 TABLE C INFLATION ............................................................................................................................................. 20 TABLE D GDP BY ACTIVITY CURRENT PRICES – N$ MILLIONS .......................................................................................... 21 TABLE E GDP BY ACTIVITY CURRENT PRICE – PERCENTAGE SHARE TO GDP ........................................................................ 22 TABLE F GDP BY ACTIVITY CONSTANT 2015 PRICES – N$ MILLIONS ................................................................................ 23 TABLE G GDP BY ACTIVITY CONSTANT 2015 PRICES – ANNUAL PERCENTAGE CHANGE .......................................................... 24 TABLE H EXPENDITURE ON GDP CURRENT PRICES – N$ MILLIONS .................................................................................. 25 TABLE I EXPENDITURE ON GDP CURRENT PRICES – PERCENTAGE SHARE TO GDP ................................................................ 25 TABLE J EXPENDITURE ON GDP CONSTANT 2015 PRICES – N$ MILLIONS ......................................................................... 25 TABLE K EXPENDITURE ON GDP CONSTANT 2015 PRICES – ANNUAL PERCENTAGE CHANGE .................................................. 26 TABLE L PRIVATE CONSUMPTION BY CATEGORY BY PURPOSE CURRENT PRICES – N$ MILLIONS ................................................ 26 TABLE M PRIVATE CONSUMPTION BY CATEGORY BY PURPOSE CURRENT PRICES – PERCENTAGE SHARES .................................... 26 TABLE N PRIVATE CONSUMPTION BY CATEGORY BY PURPOSE CONSTANT 2015 PRICES – N$ MILLIONS ..................................... 27 TABLE O GROSS FIXED CAPITAL FORMATION BY ACTIVITY CURRENT PRICES – N$ MILLIONS ..................................................... 27 TABLE P GROSS FIXED CAPITAL FORMATION BY ACTIVITY CONSTANT PRICES – N$ MILLIONS ................................................... 27 TABLE Q GROSS FIXED CAPITAL FORMATION BY TYPE OF ASSET CURRENT PRICES – N$ MILLIONS ............................................. 28 TABLE R GROSS FIXED CAPITAL FORMATION BY TYPE OF ASSET CONSTANT PRICES – N$ MILLIONS ............................................ 28 TABLE S GROSS FIXED CAPITAL FORMATION BY OWNERSHIP CURRENT PRICES – N$ MILLIONS ................................................. 28 TABLE T GROSS FIXED CAPITAL FORMATION BY OWNERSHIP CONSTANT PRICES – N$ MILLIONS ............................................... 28 TABLE U FIXED CAPITAL STOCK BY ACTIVITY CURRENT PRICES – N$ MILLIONS ..................................................................... 29 TABLE V FIXED CAPITAL STOCK BY ACTIVITY CONSTANT PRICE – N$ MILLIONS ..................................................................... 29 TABLE W EXTERNAL TRANSACTIONS– N$ MILLIONS..................................................................................................... 30 TABLE X EXPORTS OF GOODS AND SERVICE CURRENT PRICES – N$ MILLIONS ...................................................................... 31 TABLE Y EXPORTS OF GOODS AND SERVICE CONSTANT PRICES – N$ MILLIONS .................................................................... 32 TABLE Z IMPORTS OF GOODS AND SERVICE CURRENT PRICES – N$ MILLIONS ...................................................................... 33 TABLE AA IMPORTS OF GOODS AND SERVICE CONSTANT PRICES – N$ MILLIONS ................................................................. 34 TABLE BB GOVERNMENT INCOME, EXPENDITURE, SAVINGS – N$ MILLIONS ....................................................................... 36 TABLE CC EXTERNAL TRADE INDICES ........................................................................................................................ 36 TABLE DD EXTERNAL TRADE INDICES – ANNUAL CHANGES ............................................................................................. 36 TABLE EE FOREIGN EXCHANGE RATES ...................................................................................................................... 37 TABLE FF CURRENT PRICES – $ MILLION ................................................................................................................... 37 TABLE GG CURRENT PRICES – $ MILLION CONT…........................................................................................................ 38 TABLE II CURRENT PRICES – PERCENTAGE SHARE TO GDP ............................................................................................ 39 TABLE JJ CURRENT PRICES – PERCENTAGE SHARE TO GDP CONT... .................................................................................. 40 TABLE KK CONSTANT 2015 PRICES – $ MILLION ........................................................................................................ 41 TABLE LL CONSTANT 2015 PRICES – $ MILLION CONT... ............................................................................................... 42 TABLE MM CONSTANT 2015 PRICES – PERCENTAGE CHANGE ....................................................................................... 43 TABLE NN CONSTANT 2015 PRICES – PERCENTAGE CHANGE CONT... .............................................................................. 44

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TABLE OO FOREIGN EXCHANGE RATES ..................................................................................................................... 45

LIST OF FIGURES

FIGURE 1 HIGH-LEVEL CONCORDANCE ........................................................................................................................ 7 FIGURE 2 GDP GROWTH RATES ................................................................................................................................ 8 FIGURE 3 GROSS NATIONAL INCOME (GNI) AND GROSS NATIONAL DISPOSABLE INCOME (GNDI) ........................................... 7 FIGURE 4 GROSS SAVINGS AND GROSS FIXED CAPITAL FORMATION ................................................................................... 7 FIGURE 5 GROSS SAVINGS AND GROSS FIXED CAPITAL FORMATION AS A PERCENTAGE TO GDP ................................................ 8 FIGURE 6 CPI AND GDP-DEFLATOR IN PERCENT ......................................................................................................... 10 FIGURE 7 GENERAL GOVERNMENT INCOME ............................................................................................................... 10 FIGURE 8 INCOME, EXPENDITURE, SAVINGS ............................................................................................................... 10 FIGURE 9 INDUSTRIES SHARES TO GDP..................................................................................................................... 11 FIGURE 10 GROWTH RATES OF INDUSTRIES IN PERCENT ................................................................................................ 12 FIGURE 11 EXPORTS AND IMPORTS OF GOODS AND SERVICES IN MILLIONS N$ .................................................................... 17

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1. INTRODUCTION 1.1 BACKGROUND

This publication presents time series data of national accounts variables for 2013-2018. The Namibia National Accounts have been rebased every five years as per international best practice since after independence.

This time around a rebasing could not be undertaken due to insufficient base data caused by lack of funds for major input surveys such as the establishment census and economic surveys.

However, a revision exercise comprising of re-referencing, incorporation of new data sources and improvement of methodologies was undertaken. The reference period is moved

from 2010 to 2015. The growth rates are based on 2015 structure of the economy.

The national accounts follow the System of National Accounts 2008 (SNA2008). The SNA is a coherent and consistent framework developed by the United Nations that allows for international comparability.

The latest version of International Standard Industrial Classification of All Economic Activities (ISIC rev.4) has been used to classify economic activities, Classification of Individual Consumption According to Purpose (COICOP) for expenditure, while for export and import the Harmonised System (HS) commodity coding is used.

1.2 OBJECTIVES

The National Accounts framework provides a comprehensive, conceptual and accounting framework for analysing and evaluating the performance of the economy.

It derives important aggregates such as the Gross Domestic Product (GDP), Gross Fixed

Capital Formation (GFCF), Savings (S), Consumption (C), Import (IM) and Export (EX) of goods and services, etc. These aggregates are used by researchers and analysts to construct models that assist in economic analysis as well as by policy makers to make informed decisions.

1.3 METHODOLOGY

In principle, the national accounts compilation is a major undertaking and therefore draws from a variety of data sources.

These sources range from primary data sources (company annual surveys), administrative records (Tax data and company financial statements), and data collected through censuses and sample surveys (Agriculture Census, Labour Force Survey, Population and Housing census, National Income and Expenditure Survey, etc.)

Annual data for Namibia is collected through questionnaires that is sent to companies every year and information is collected over a six months’ period. Data is entered into the National Accounts Data Base (NADABAS) where they are processed and tabulated.

The estimates are published two times a year with the first estimates released three months after the end of the reference year with the second estimates released within nine months later. These estimates are presented on calendar year basis.

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1.4 NORMAL REVISIONS OF NATIONAL ACCOUNTS ESTIMATES

The revisions in the National Accounts are always necessary because certain data only become available more than a year after the end of the reference period. As part of the Revision process for National Accounts, the national accounts estimates are revised years back due to updated data, new sources and new methodologies being implemented. Revision of certain variables are necessary as new evidence becomes available or to correct errors in the estimates. It is ideal, that users of National Accounts would prefer to be provided with instant and precise data. However, there is a trade-off between timeliness and accuracy.

In line with international best practice and NSA revision policy, the national accounts are revised for the latest three years with major revisions done every five years during a rebase. This time around the NSA could not rebase due to insufficient source data, but only able to do a large Revision.

This Revision involved the implementation of SNA2008 by allocating FISIM to industries and the incorporation of improved source data such as Value Added Tax (VAT) data, Namibia Communal Census of Agriculture 2013/14 and adoption of the ISIC rev.4 amongst others.

Applying this methodological change brought about revisions in the overall estimates. There was a re-allocation of subsectors to fit the ISIC rev.4 that mainly affected Wholesale and retail trade; Transport and communication; and Other business services.

The use of VAT data received from the Ministry of Finance was implemented in Hotels and restaurants; Manufacturing; Real estate; Electricity and water; Professional, scientific and technical services; and Administrative and support services sectors.

More specifically, the Agriculture, forestry and fishing; Mining and quarrying; Public Administration; Education; and Health sectors experienced the major revisions mainly due to changes in methodology. A brief description is outlined below (Figure 1).

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Figure 1 High-level concordance

1.4.1 Agriculture, forestry and fishing The revisions witnessed in the subsector emanate from the introduction of “unregistered slaughters”, within the cattle livestock commodity flow which as a result, increased the overall output for this subsector.

1.4.2 Mining and quarrying Revisions made in Mining and quarrying emanates from the Diamond subsector of which data has been revised using Customs Procedures Codes (CPC). Previously the Harmonized System for commodity coding could not separate the exports of rough and processed diamonds. This led to a double counting of output which was then corrected and reduced in the current estimates.

1.4.3 Government Services Government services includes Public Administration, Education and Health sectors. A wage index is used to deflate government output while in the past the number of employees was used as a volume indicator. This change in the methodology resulted in the differences of time series from the earlier published estimates.

1.4.4 Financial Intermediation Services Indirectly Measured (FISIM) Previously, in the national accounts, FISIM was shown as an aggregate amount which was then subtracted from total value added as per SNA 1968. In line with the latest recommendations, FISIM is allocated between users (lenders as

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well as borrowers), treating the allocated amounts either as intermediate consumption for enterprises and as final consumption to households.

Applying this methodological change, it brought about a revision in the overall estimates. The GDP for 2018 in nominal terms has reduced from N$ 192,138 million to N$ 177,020 million. In real terms, the growth rates have been revised from 2013 to 2018.

1.4.5 Economic performance The domestic economy in 2018 is estimated to have recorded a marginal growth of 0.3

percent compared to a contraction of 0.1 percent recorded in 2017 (Figure 2). The improved results stemmed from increased performance in the Secondary industries that improved from a decline of 7.0 percent in 2017 to an increase of marginal 0.1 percent in 2018. This is an improvement of 7.1 percentage points. Primary industries slowed from 11.0 percent recorded in 2017 to 8.4 percent registered in 2018. The Tertiary industries posted a drop in economic activities, registering a decline of 1.6 percent in real value added in 2018

Figure 2 GDP growth rates

2. GROSS NATIONAL INCOME AND GROSS NATIONAL DISPOSABLE INCOME1 Gross National Income (GNI) (Figure 3) measures national income generated by Namibian factors of production both inside and outside of Namibia. Over the years, 2013 to 2018, Gross National Disposable Income (GNDI) has been higher than the GNI because of net inflows in current transfers that have been influenced mainly by high SACU receipts. 1 For GNI and GNDI definitions refer to the ‘List of Terms and Definitions’ at the end of this publication

Gross National Income stood at N$ 173,080 million in 2018 as compared to N$ 166,367 million recorded in 2017, representing an increase of 4.0 percent in nominal terms. Gross National Disposable Income (GNDI) improved to N$ 191,682 million in 2018 from N$ 185,497 million of the preceding year.

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Figure 3 Gross National Income (GNI) and Gross National Disposable Income (GNDI)

3. SAVINGS AND INVESTMENTGross savings is calculated as the difference between disposable income and final consumption expenditure. The more a country spends its national income on consumption, the less resources are available for investment and savings; and consequently for future production.

Figure 4 depicts the performance of Gross Savings and Gross Fixed Capital Formation/Investment (GFCF) over time. The

figure shows that investment was consistently higher than gross savings. This is a reflection of capital inflows from abroad into the economy of Namibia.

Figure 5 shows the relation between gross savings and gross fixed capital formation as a ratio to Gross Domestic Product (GDP) during the period under review. The ratio of savings and investment to GDP in 2018 stood at 12.2 percent and 25.7 percent, respectively.

Figure 4 Gross Savings and Gross Fixed Capital Formation

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Figure 5 Gross Savings and Gross Fixed Capital Formation as a percentage to GDP

4. INFLATION AND GDP DEFLATOR The period between 2013 and 2018 has witnessed the inflation hovering between 3.4 percent and 6.7 percent (Figure 6). The year 2016 witnessed the highest inflation of 6.7 percent.

The average inflation for 2018 was 4.3 percent compared to 6.1 percent recorded in 2017.

The main contributors to the lower inflation rate were the categories of “housing, water, electricity, gas and other fuels” (5.6 percent), “food and non-alcoholic beverages” (2.4 percent), clothing and footwear (-3.7 percent),

furnishing, household equipment and routine maintenance (3.8 percent), health (5.7 percent), hotels, café and restaurants (3.8 percent) and recreation and culture (3.4 percent). The GDP deflator is a ratio of nominal GDP to real GDP and measures the general level of prices of all domestically produced goods and services. The GDP deflator slowed down to 4.1 percent in 2018 compared to an increase of 8.1 percent in 2017. The slowdown in price levels were observed in tertiary and secondary industries.

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Figure 6 CPI and GDP-deflator in percent

5. GENERAL GOVERNMENT INCOME, EXPENDITURE AND SAVINGS

Income generated by general government in 2018, amounted to N$55,930 million. This is a decline of 3.6 percent in nominal terms compared to an increase of 6.5 percent registered in 2017 (Figure 7). The main source for government income is taxes on production and imports, taxes on wealth and income and current transfers from the rest of the world.

Over the reporting period, taxes remain the largest contributor. However, current transfers, which mainly includes SACU receipts, has been recording a declining trend. In 2018, current transfers stood at N$17,375 million, representing a decline of 10.2 percent compared to a growth of 9.7 percent in 2017.

Figure 7 General government income

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The negative performance is attributed to a decline in the current transfers and property income receivable that recorded 10.2 percent

and 23.9 percent, respectively. Additionally, taxes on production imports also recorded marginal decrease of 1.2 percent.

Figure 8 Income, expenditure, savings In terms of expenditure, general government total expenditure in 2018 stood at N$64,792 recording a contraction of 4.4 percent in nominal terms for 2018 compared to a strong increase of 7.2 percent recorded on 2017. The weak growth is primarily attributed to government fiscal consolidation, reducing transfer to Non Profit Institutions Serving Households (NPISH) by 27.5 percent compared to a strong growth of 5.5 percent in 2017.

Government savings is calculated as the difference between income and expenditure. In 2018, general government recorded a dissaving of N$8,862 million compared to the N$9,705 million recorded in 2017. This

represents a decline of 8.7 percent compared to a strong growth of 11.0 percent in 2017.

In terms of capital formation, general government investment stood at N$5,310 million, up from N$4,752 million representing an increase of 11.7 percent in 2018.

Overall, to finance the expenditure, government needs to borrow N$14,642 million in 2018 compared to N$13,812 million that was needed in 2017. This shows an increase of 6.0 percent compared to a decline of 11.7 percent required in 2017. Figure 8, above shows the income, expenditure, savings and capital formation.

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6. INDUSTRIES SHARE AND PERFORMANCE The size of the economy expanded from N$169, 475 million in 2017 to N$177,020 million in 2018. Overall three main industries share for 2018 is depicted in Figure 9 below. It can be seen that Tertiary industries remain the main share to GDP accounting for 58.7 percent.

The Primary industries contributed 16.0 percent while the Secondary industries contributed 17.7 percent to GDP. The category

‘other’ includes taxes minus subsidies that are added to GDP at basic prices to arrive at GDP at market prices, contributed 7.6 percent to the share of GDP.

Both the Primary and Secondary industries share to GDP trend on average has been declining while the Tertiary industries gained some share of GDP.

Figure 9 Industries shares to GDP

In 2018, the Primary industries performance slowed relative to the previous year, recording a growth of 8.4 percent compared to a strong growth of 11.0 percent in 2017. The Tertiary industries contracted deeper, recording a decline of 1.6 for 2018 relative to a contraction of 0.1 percent in 2017.

The Secondary industries however recorded an improvement, posting a positive growth of 0.1 percent compared to a steep contraction of 7.0 percent in 2017. Figure 10 shows the industries performance.

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Figure 10 Growth rates of industries in percent

SECTORAL DEVELOPMENTS [ANNUAL TRENDS]

Agriculture, forestry and fishing The agriculture, forestry and fishing sector is estimated to have recorded a contraction in real value added of 2.0 percent for 2018 compared to a strong growth of 6.9 percent recorded in the corresponding quarter of 2017.

The poor performance in the sector is attributed to the Crop farming and forestry subsector that contracted by 6.9 percent in 2018 compared to a strong growth of 15.7 percent recorded during 2017.

Livestock subsector registered a decline of 0.8 percent in real value added compared to a strong growth of 9.7 percent in 2017.

The subsector Fishing and fish processing on board is estimated to have recorded a sluggish growth of 0.1 percent in real value added compared to a growth of 0.8 percent recorded in 2017.

The slow performance in subsector is driven by the contraction in demersal fisheries that declined by 7.4 percent compared to a steeper decline of 10.5 percent recorded in 2017.

However, ‘fish processing on board’ registered a strong growth of 31.7 percent in real terms in 2018, compared to a decline of 8.1 percent recorded in 2017.

Mining and quarrying Mining and quarrying sector is estimated to have registered a growth of 16.0 percent in real value added during 2018, compared to 14.2 percent recorded in 2017.

The performance in the sector is attributed to Diamond, Uranium and Other mining & quarrying subsectors that recorded strong and positive growths of 15.1 percent, 33.4 percent and 13.4 percent, respectively.

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The Diamond subsector recorded a strong growth of 15.1 percent real value added, compared to 14.5 percent recorded in 2017. The increase in the Diamond subsector was due to high volume of carats produced during the period under review.

Despite low demand and depressed uranium prices, Uranium subsector is estimated to have registered a robust growth in real value added of 33.4 percent in 2018, compared to 23.4 percent recorded in 2017. This performance was reflected in the increase in the production volume of uranium due to additional mine reaching its full potential.

Other mining and quarrying subsector registered a strong growth of 13.4 percent in real value added compared to a strong growth of 63.7 percent registered in the preceding year. The performance of the subsector is attributed to increase activities in mineral exploration and the production of marble & salt during the period of 2018.

However, Metal ores subsector registered a growth of 0.8 percent in real value added in 2018 compared to a negative growth of 26.3 percent registered in the preceding year.

The improved performance in the subsector is attributed to other metal production that recorded an increase of 4.7 percent in, compared to a decline of 46.7 percent recorded last year 2017.

Manufacturing The manufacturing sector is estimated to have recorded a growth of 0.3 percent in real value added in 2018 compared to negative growth of 1.5 percent recorded in 2017.

The improved performance in the sector is mainly due to beverages, other food products, fabricated metals, Leather and related products; and rubber and plastics products subsectors that recorded stronger growths in

real value added of (4.7 percent), (5.1 percent), (5.5 percent), (4.5 percent) and (7.0 percent), respectively.

The increase in beverages is due to the production of beer that increase by 5.6 percent in 2018 compared to a decline of 0.9 percent recorded in 2017. In the same vein the increase in other food products subsector is reflected in the subsector fish processing on shore that registered an increase of 31.7 percent compared to a decline of 8.1 percent in 2017, respectively.

In addition to positive growths, subsectors such as grain meal products; textile and wearing apparel posted strong growths and registered (1.9 percent) and (0.9 percent) during the period under review compared to growths of (8.1 percent) and (11.3 percent) recorded in 2017, accordingly.

On the other hand, basic non-ferrous metals, diamond processing, publishing and printing, and wood and wood products posted declines in real value added of (4.0 percent), (1.1 percent), (13.2 percent) and (12.5 percent), respectively.

Electricity and water The Electricity and Water sector is estimated to have recorded a strong growth of 6.6 percent in real value added in 2018 compared to a decline of 14.9 percent in 2017.

The strong performance in the sector is attributed to both the Electricity and Water subsectors that recorded positive growths.

The Electricity subsector recorded a strong growth of 5.8 percent in real value added compared to a contraction of 20.6 percent recorded in the previous year.

Similarly, the water supply subsector registered a strong growth of 7.7 percent in

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real value added compared to a contraction of 6.0 percent in 2017.

Construction The construction sector is estimated to have recorded a negative growth in real value added of 5.4 percent during the period under review compared to a steeper decline of 23.1 percent recorded in 2017.

The poor performance in the sector, albeit recovering, was mainly due to the construction works done by the government and ‘mining and quarrying’ sector that registered declines of 5.1 percent and 9.5 percent in real terms in 2018 compared to declines of 36.4 percent and 67.7 percent recorded in 2017, respectively.

However, the value of buildings completed, in nominal terms registered a slow growth of 11.9 percent in 2018 compared to a strong growth of 35.5 percent recorded in a preceding year.

Wholesale and retail trade The wholesale and retail trade sector is estimated to have registered a negative growth of 6.3 percent in real value added during 2018 compared to a decline of 6.8 percent in 2017.

The weak performance of the sector is reflected in the sales of vehicles and furniture’s subsectors that recorded negative growths of 24.5 percent and 3.0, while clothing, wholesalers and supermarkets sales recorded increases.

Demand for final goods remain subdued during the period under review though signs of recovery are starting to show.

Hotels and restaurants The hotels and restaurants sector is estimated to have recorded a growth in real value added of 0.4 percent in 2018 compared to negative growth of 1.4 percent registered in 2017.

The improved performance in the sector is mainly attributed to subsector restaurants’ that registered an increase in real value added of 1.1 percent in 2018 compared to negative growth of 3.2 percent recorded in 2017.

The subsector hotels’ also registered a growth in real value added of 0.2 percent in 2018 compared to negative growth of 0.8 percent in 2017, respectively.

Transport and storage The transport and storage sector is estimated to have recorded a negative growth of 2.3 percent in real value added during 2018, compared to a decline of 4.8 percent recorded in 2017.

The growth is mainly attributed to freight transport by road, post & couriers and airport services subsectors, which posted negative growths in real value added of (7.2 percent), (2.1 percent) and (2.4 percent) in 2018, compared to declines of (5.9 percent), (7.6 percent) and a growth of 24.1 percent in 2017, respectively.

The decline in the freight transport by road is attributed to the reduction of cargo transported during the period under review. While the decline in Airport services is attributed to reduction in Aircraft landed in the period under review as compared to 2017.

However, port services, railway transport and air transport subsectors are estimated to have recorded positive growths of 11.7 percent, 7.3 percent and 2.6 percent in real value added during 2018, accordingly.

Port services is estimated to have registered a strong growth of 11.7 percent in real value added during 2018, compared to a decline of 12.8 percent recorded in 2017. The performance of the subsector is attributed to the increase of the cargo handled during the period under review.

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Information and communication Information and communication sector is estimated to have recorded a negative growth of 1.6 percent in real value added during the period under review, compared to a strong growth of 6.3 percent recorded in 2017.

The poor performance is attributed to the decline in the activities of the sector as reflected in the “minutes used” when relatively compared to last year 2017.

Consumers are switching to more convenient and cost-efficient ways to make international calls as compared to the norm.

Financial and insurance service activities Financial and insurance activities recorded a contraction of 0.5 percent in 2018 as when compared to 3.7 percent estimated in 2017.

The performance of the sector is attributed to financial service activities declined to 1.9 percent in real value added in 2018 in comparison to the contraction of 2.5 percent registered during the preceding year.

In addition, insurance activities recorded a slow growth of 1.1 percent in value added in 2018 compared to 12.2 percent recorded in the previous year.

Real estate activities The real estate sector estimated a moderate growth of 2.7 percent in real value added in 2018 when compared to the growth of 2.6 percent in 2017.

The performance is attributed to increases in the volume of houses as a result of on-going improvement land servicing delivery supported by a 7.7 percent growth in mortgage loan advanced to households during the period under review as compared to a growth of 8.0 percent in 2017.

Professional, scientific and technical services Professional, scientific and technical services sector recorded a further contraction of 3.9 percent in real value added in 2018 when compared to a decline of 2.6 percent estimated in 2017.

The performance is attributed to declines in business revenue in real terms coupled with slow demand for these activities.

Administrative and Support Services Administrative and Support services estimated declines of 4.4 percent in real value added during the period under review compared to the 2.2 percent recorded in the previous year.

The performance is attributed to the slowdown of economic activities whereby a demand for support services shrank and subsequently affected the output of the sector.

Public administration and defence Public administration and defence which include central government administrative activities, statutory bodies and local government activities, recorded slow growth of 0.8 percent in real value added in 2018 compared to a growth of 3.5 percent recorded in 2017.

Fiscal consolidation still remains the main attribute to the performance of the sector.

Education On the other hand, the education sector recorded a growth of 1.2 percent in real value in 2018 when compared to a decline of 2.0 percent growth in 2017.

The growth is supported by ‘primary and secondary’ subsector that recorded a robust growth of 2.2 percent in 2018 when compared to the decline of 2.8 percent in the previous year.

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The increases in the number of teachers are to be expected to support the implementation of the new education curriculum.

Health Health sector has estimated a decline of 5.8 percent in real value added in 2018 from a growth of 6.1 percent recorded in 2017.

The performance is mainly driven by the public health subsector that is estimated to have contracted by 6.8 percent in 2018 as compared to the growth 7.9 percent observed in 2017. Reduction in public health activities are a reflection of a decline in the intake of health professionals during the period under review.

7. EXPENDITURE ON GDP

Final consumption expenditure Final consumption expenditure has the largest share to GDP. The average share of the final consumption expenditure to GDP over the years 2013 to 2018, amounts to 95.9 percent.

In 2018, final consumption expenditure amounted to N$170.144 million compared to N$163.696 million in 2017.

During 2018 private final consumption expenditure accounted for 69.1 percent of the total final consumption as compared to 70.0 percent in 2017.

The real growth of private consumption in 2018 has declined to 1.3 percent when compared to a contraction of 6.3 percent in 2017.

In real terms, government final consumption expenditure slowed down from 1.8 percent registered in 2017 to record a 1.1 percent in the reporting period.

Gross fixed capital formation (Investment) The ratio of gross fixed capital formation to GDP is a vital indicator for future development potential of any country.

The average ratio of investment to GDP over the period 2013 to 2018 is 25.7 percent. The

ratio of investment to GDP in 2018 stood at 17.3 percent compared to 17.9 percent recorded in 2017. The year 2018 marks as one of the lowest investment ratio to GDP.

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Trade of goods and services Namibia continues to be a net importer of goods and services over the period of 2013 to 2018, thus recording trade deficits throughout the reporting period.

The value of imports of goods stood at N$75,331 million in 2018 compared to N$73,428 million recorded in 2017. Imports of services declined marginally, posting N$8,976 million in 2018 from N$9,088 million in 2017

Figure 11 Exports and imports of goods and services in millions N$

The export value of goods for 2018 amounts to N$55,577 million while the value of services exported was recorded N$8,235 million in

2017. Above shows Figure 11, on imports and exports of goods and services.

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8. QUARTERLY SECTORAL ANALYSIS

In the third quarter, the performance of the economy contracted by 0.8 percent in real terms when compared to a growth of 0.4 percent recorded in the same quarter of 2018. Based on the 2015 prices, this is the fourth consecutive decline being observed in the economy.

The poor performances are primarily attributed to the ‘Mining and quarrying’, ‘Transport and Storage’ and ‘Electricity and water’ sectors posting declines of 8.2 percent, 3.3 percent and 18.9 percent, respectively.

Further declines were observed in the Administrative and support services sector posting a drop of 11.8 percent in real value added compared to a growth of 3.8 percent registered for the same quarter of 2018.

Sectors such as ‘Wholesale and retail trade’, Education, Health registered declines in real value added of 5.4 percent, 0.5 percent, 2.1 percent, respectively.

Year on year, in nominal terms, the aggregate QGDP stood at N$45 825 million, a drop of N$372 million, representing a decline of 0.8 percent in the level of the economy. This clearly shows that the level of the economy is shrinking relative to the same period of 2018.

The Manufacturing sector recorded the largest share to QGDP, at 12.5 percent, a relative improvement of 0.8 percentage points, when compared to 11.7 percent share to QGDP recorded in corresponding quarter of 2018.

The Wholesale and retail trade sector share to QGDP slowed to 8.8 percent, shedding off a 0.1 percentage points when compared to the 9.0 percent share recorded for the third quarter of 2018.

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Table A Gross domestic product and gross national income

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Table B National disposable income and savings

Table C Inflation

2013 2014 2015 2016 2017 2018

Current prices - N$ millions

Gross national disposable income 131,805 151,783 162,917 169,436 185,497 191,682

Consumption of fixed capital 13,036 14,872 16,024 17,522 18,052 19,507

Net national disposable income 118,769 136,911 146,893 151,914 167,445 172,175

All other sectors 89,675 103,840 114,692 118,666 132,759 135,392

General government 29,094 33,071 32,201 33,248 34,686 36,783

Final consumption expenditure 109,727 120,868 139,243 160,987 163,696 170,144

Private 76,919 83,483 99,484 118,426 118,697 122,387

General government 32,808 37,386 39,759 42,561 45,000 47,757

Saving, net 9,041 16,043 7,650 -9,073 3,749 2,030

All other sectors 12,755 20,357 15,207 241 14,063 13,005

General government -3,714 -4,315 -7,558 -9,314 -10,314 -10,975

Financing of capital formation

Saving, net 9,041 16,043 7,650 -9,073 3,749 2,030

Capital transfers receivable from abroad 3,185 1,748 1,772 2,104 2,482 1,908

Capital transfers payable to foreign countries -290 -201 -399 -162 -60 -182

Total 11,937 17,590 9,022 -7,131 6,171 3,757

Capital formation

Gross fixed capital formation 36,170 47,441 45,020 34,075 30,397 30,540

All other sectors 31,452 41,100 38,144 28,774 25,787 25,226

General government 4,719 6,341 6,876 5,301 4,611 5,314

Consumption of fixed capital -13,036 -14,872 -16,024 -17,522 -18,052 -19,507

All other sectors -11,735 -13,550 -14,701 -16,135 -16,559 -17,761

General government -1,300 -1,322 -1,324 -1,387 -1,493 -1,746

Changes in inventories -2,055 -542 -660 293 -338 -3,729

Net lending (+) / Net borrowing(–) -9,144 -14,437 -19,314 -23,977 -5,836 -3,548

All other sectors -1,610 -3,986 -3,578 -7,969 8,715 13,691

General government -7,534 -10,451 -15,736 -16,008 -14,550 -17,238

Discrepancy on GDP 1) 0 0 0 0 1 1

Net lending/borrowing in external transactions 2) -9,144 -14,437 -19,314 -23,977 -5,837 -3,548

Total 11,937 17,590 9,022 (7,131) 6,171 3,757

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Table D GDP by activity current prices – N$ millions

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Table E GDP by activity current price – percentage share to GDP

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Table F GDP by activity constant 2015 prices – N$ millions

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Table G GDP by activity constant 2015 prices – annual percentage change

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Table H Expenditure on GDP Current prices – N$ millions

Table I Expenditure on GDP Current prices – percentage share to GDP

Table J Expenditure on GDP Constant 2015 prices – N$ millions

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Table K Expenditure on GDP Constant 2015 prices – annual percentage change

Table L Private consumption by category by purpose Current prices – N$ millions

Table M Private Consumption by category by purpose Current prices – percentage shares

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Table N Private consumption by category by purpose Constant 2015 prices – N$ millions

Table O Gross fixed capital formation by activity current prices – N$ millions

Table P Gross fixed capital formation by activity constant prices – N$ millions

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Table Q Gross fixed capital formation by type of asset Current prices – N$ millions

Table R Gross fixed capital formation by type of asset Constant prices – N$ millions

Table S Gross fixed capital formation by Ownership current prices – N$ millions

Table T Gross fixed capital formation by Ownership constant prices – N$ millions

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Table U Fixed capital stock by activity Current prices – N$ millions

Table V Fixed capital stock by activity Constant price – N$ millions

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Table W External transactions– N$ millions

2013 2014 2015 2016 2017 2018

Exports of goods and services 43,983 52,593 51,631 55,180 57,664 63,810

Exports of goods 39,081 42,925 41,621 48,024 49,762 55,577

Exports of services 4,902 9,668 10,009 7,156 7,902 8,233

Imports of goods and services 70,716 86,380 90,028 93,657 81,944 83,747

Imports of goods 63,517 76,819 81,363 82,227 72,856 74,771

Imports of services 7,199 9,561 8,665 11,430 9,088 8,976

External balance of goods and services -26,733 -33,787 -38,397 -38,476 -24,280 -19,937

Primary income receivable 3,207 4,043 3,926 3,874 3,827 4,535

Compensation of employees 324 495 327 339 365 402

Property income 2,883 3,549 3,599 3,535 3,462 4,133

Primary income payable 3,512 4,823 4,159 6,974 6,936 8,475

Compensation of employees 433 791 469 361 482 412

Property income 3,079 4,032 3,690 6,613 6,454 8,062

External balance of primary incomes -305 -780 -233 -3,100 -3,109 -3,940

Current transfers, receivable 16,439 20,327 19,934 17,563 20,997 20,532

Current taxes on income, wealth, etc. 94 137 152 229 228 175

Receivable due to SACU membership 14,494 17,269 17,374 14,835 18,216 17,931

Other current transfers receivable by Government 1,166 1,977 1,759 1,247 1,271 1,298

Miscellaneous transfers 685 943 648 1,252 1,283 1,129

Current transfers, payable 1,440 1,744 1,990 1,906 1,867 1,931

Current taxes on income, wealth, etc. 4 4 4 4 4 4

Payable due to SACU membership 958 957 1,127 1,158 1,257 1,381

Other current transfers payable by Government 75 117 380 65 103 89

Miscellaneous transfers 403 666 479 678 502 456

External balance of current transfers 14,999 18,583 17,944 15,657 19,131 18,601

Current external balance -12,039 -15,984 -20,687 -25,919 -8,258 -5,275

Capital transfers receivable 3,185 1,748 1,772 2,104 2,482 1,908

Capital transfers payable (-) -290 -201 -399 -162 -60 -182

Net lending (+) / Net borrowing(-) -9,144 -14,437 -19,314 -23,977 -5,837 -3,548

Per cent of GDP -7.8 -10.8 -13.3 -15.3 -3.4 -2.0

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Table X Exports of goods and service Current prices – N$ millions

32

Table Y Exports of goods and service Constant prices – N$ millions

33

Table Z Imports of goods and service Current prices – N$ millions

34

Table AA Imports of goods and service Constant prices – N$ millions

35

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Table BB Government income, expenditure, savings – N$ millions

Table CC External trade indices

Table DD External trade indices – annual changes

2013 2014 2015 2016 2017 2018IncomeProperty income, receivable 3,121 3,144 3,254 3,815 3,696 2,811 Interest, receivable 391 421 405 461 485 166 Income from public enterprises 2,730 2,723 2,849 3,353 3,211 2,645Taxes on production and imports 9,627 10,291 11,118 12,163 12,914 12,762 Taxes on products 9,266 10,151 11,452 12,647 13,118 13,400 Other taxes on production 360 140 -334 -484 -204 -638Taxes on income and wealth 15,052 18,248 18,763 20,599 21,598 22,419 From corporations 6,620 7,988 8,023 7,969 8,385 8,402 From households 8,431 10,260 10,740 12,629 13,213 13,195 From the rest of the world 0 0 0 0 0 822Current transfers from the rest of the world 16,025 19,628 19,975 17,636 19,355 17,375 From SACU 14,494 17,269 17,374 14,835 18,216 17,375 Other 1,532 2,359 2,601 2,801 1,139 0Imputed transfer from the Central Bank 169 242 496 261 477 564Total income 43,994 51,553 53,606 54,473 58,040 55,930ExpenditureProperty income, payable 1,800 2,529 2,637 4,324 5,440 5,792 Interest, payable 1,800 2,529 2,637 4,324 5,440 5,792Current transfers to households and NPISH 12,115 14,921 17,267 15,776 16,638 12,057Current transfers to the rest of the world 1,032 1,074 1,507 1,223 1,361 1,471Final consumption expenditure 32,808 37,391 39,752 41,891 44,306 45,473Total expenditure 47,756 55,915 61,163 63,215 67,745 64,792Saving and capital transfersSaving, net -3,762 -4,363 -7,557 -8,742 -9,705 -8,862Capital transfers, receivable 2,488 2,249 1,833 1,474 1,776 1,950Capital transfers, payable -1,562 -1,521 -1,126 -1,552 -1,541 -1,532Total saving and capital transfers -2,836 -3,634 -6,849 -8,820 -9,470 -8,443Capital formationGross fixed capital formation 4,846 6,470 7,019 5,447 4,752 5,310Consumption of fixed capital -1,300 -1,323 -1,328 -1,395 -1,503 -1,752Acquisition less disposals of land 9 -8 -2 -3 -3 -19Total 3,554 5,139 5,689 4,048 3,246 3,539Discrepancy 1,547 2,475 2,850 2,668 989 2,586Net lending(+) / Net borrowing(-) -7,996 -11,326 -15,528 -15,641 -13,812 -14,642

Percent of GDP -6.8% -8.5% -10.7% -10.0% -8.2% -8.3%

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Table EE Foreign exchange rates

Table FF Current prices – $ million

38

Table GG Current prices – $ million cont…

39

Table HH Current prices – Percentage share to GDP

40

Table II Current prices – Percentage share to GDP cont...

41

Table JJ Constant 2015 prices – $ million

42

Table KK Constant 2015 prices – $ million cont...

43

Table LL Constant 2015 prices – Percentage change

44

Table MM Constant 2015 prices – Percentage change Cont...

45

Table NN Foreign exchange rates

TECHNICAL NOTE

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Main Aggregates Gross National Income (GNI) = GDP plus net primary income from the rest of the world Gross National Disposable Income (GNDI) = GNI plus net transfer from the rest of the world Gross National Saving = GNDI less final consumption expenditure Gross domestic product There are three approaches i.e. production, income and expenditure approach, of calculating GDP estimates of any country. The approaches are briefly described. In Namibia, as in many other countries, GDP estimated by the production approach is considered the most reliable. GDP is derived as follows:

+ The sum of the value added of all industries (activities) at basic prices

+ Taxes on products

= GDP at market prices

The definition of value added is as follows:

+ Output at basic prices

- Intermediate consumption (input of goods and services) at purchasers prices

= Value added at basic prices

Output is valued at basic prices, which is the sales value of output before taxes on products have been levied, but including other taxes on production. Taxes on products include value added taxes, import duties, and fuel levy, while other taxes on production include taxes on assets used in production, like real estate taxes and motor vehicle levies, and business and professional licenses. Output being valued at basic prices implies that value added is at basic prices, even though intermediate consumption is valued at purchasers’ prices, which is the amount paid by the purchaser, including trade margins and taxes on products.

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Banks and other financial intermediaries provide services for which they do not charge explicitly. In this situation, national accounts must use an indirect measure of the value of these services. This is referred to as “Financial services indirectly measured” (FISIM). They are measured as total interest receivable by financial intermediaries minus their total interest payable. Part of them are allocated as household expenditure and included in household consumption. The rest is used by producers as intermediate consumption, but it has not been possible to allocate this item to industries. Instead it is deducted as an unallocated item at the bottom of the tables.

The components of value added at basic prices are:

+ Taxes on production, other than taxes on products

+ Compensation of employees

+ Operating surplus/mixed income, gross

= Value added at basic prices

Compensation of employees includes wages and salaries in cash and in kind as well as employers’ contributions to social security schemes. The term mixed income implies that the surplus includes an element of remuneration for the labour of the owners of unincorporated enterprises.

According to the income approach of calculating GDP, the components above are measured and aggregated at the level of the total economy. The components of GDP from the income side include only primary incomes resulting from domestic production, for example compensation of all non-resident workers is included if they are employed at resident production units, whereas that of residents working at enterprises situated abroad or at non-resident units located within the domestic territory - such as foreign embassies - is excluded.

The third approach to compute GDP is by the expenditure approach, as the sum of the final uses of goods and services, measured at purchasers’ prices, minus imports of goods and services.

The expenditure on GDP includes the following components:

+ Final consumption expenditure

By households, NPISH and general government

+ Gross fixed capital formation

+ Changes in inventories

= Gross domestic expenditure

+ Exports of goods and services

- Imports of goods and services

= GDP at market prices

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Final consumption expenditure by households includes all expenditure, in cash and in kind, by households on goods and services for the purpose of consumption, minus sales of any such goods.

Final consumption expenditure by non-profit institutions serving households (NPISH). The output of such institutions, defined as the total cost of producing it, is by definition consumed by the NPISH themselves.

Final consumption expenditure by general government is defined in the same way as for NPISH.

Gross fixed capital formation includes all expenditure by producers for acquisitions less disposals of produced fixed assets to be used in the production process. It includes tangible assets like vehicles, machinery, equipment, buildings and other construction works. Also some intangible assets are included, for example mineral exploration.

Changes in inventories are by definition equal to the total value of all goods that enter the inventories of producers minus all goods that are withdrawn from them. Producers keep inventories of the goods they produce either as finished products or work-in-progress, of materials and supplies for use as intermediate consumption, and of goods purchased for resale.

Exports and imports of goods and services consist of sales, barter, grants or gifts of goods and services from/to residents and to/from non-residents.

The expenditure approach should in theory result in exactly the same figure for GDP as the production approach. However, in practice this is not the case in Namibia’s national accounts. The reason is imperfections and gaps in the data sources. The production approach is considered the more reliable method and determines GDP both at current and constant prices.

As is the case in many other countries, the NSA has chosen to make the discrepancy visible and not try to eliminate it completely. Part of the discrepancy is due to the fact that the estimates of changes in inventories are incomplete; estimates are made only for livestock and ores and minerals.

Private consumption comprises of two components: final consumption expenditure by households and final consumption expenditure by non-profit institutions serving households (NPISH).

Direct purchases abroad by households include expenditure by resident households during travels in foreign countries and private expenditure by Namibians working in Namibian embassies abroad.

Direct purchases on the domestic market by non-residents include expenditure by non-residents in Namibia: private tourists; business and official visitors; and non-Namibians working in foreign embassies in Namibia. The first item must be added to and the second item deducted from household consumption on the domestic market. Both items are adopted from the balance of payments, and it is not possible to break them down into consumption purposes (food, etc.).

Final consumption expenditure by general government. Government services are available free of charge or at prices that are not economically significant. Examples of the latter are hospital fees, passport fees, and entrance fees. Thus, there are no market prices on government services. Instead, its output is defined as the sum of the costs of production.

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By definition, this output minus any fees charged by government is recorded as final consumption expenditure by government itself. In summary, the relationships are as follows:

+ Intermediate consumption

+ Compensation of employees

+ Consumption of fixed capital

= Output

– Sales and fees

= Final consumption expenditure

The value added created in the production of government services is defined as the sum of compensation of employees and consumption of fixed capital.

The relative size of government

There are several conceivable measurements of the relative size of government in economic terms as shown below:

•The percentage contribution by producers of government services to GDP. This is equal to government value added as a per cent of the GDP.

•Final consumption expenditure and gross fixed capital formation by government as per cent of GDP. This measure indicates the share of the domestic resources that are used by government for “tax”-financed consumption and capital formation.

Fixed Capital Stock

The term fixed capital stock refers to the current value of all fixed assets, written down by the accumulated consumption of fixed capital on these assets. Consumption of fixed capital is a cost of production, defined as the decline in the current value of the fixed capital stock during the course of the accounting period. This decline in value is the result of physical deterioration, normal obsolescence or ordinary accidental damage. It is a theoretically calculated value that may differ considerably from depreciation as recorded in business accounting.

The value of fixed capital stock and consumption of fixed capital should reflect the cost of resources at the time the production takes place. This value may be very different from the historic costs, i.e. the prices paid for the fixed assets at the time of acquisition.

The National Accounts of Namibia contain estimates of gross fixed capital formation by industry cross-classified by type of asset. The estimates are also classified by ownership of public and private sectors. The two variables, “fixed capital stock” and “consumption of fixed capital”, are calculated by type of asset and industry on the basis of the time series for gross fixed capital formation and assumptions of the life span of the fixed assets.

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Gross fixed capital formation by type of asset is recorded by five categories: buildings; other construction works; vehicles and transport equipment; machinery and other equipment; and mineral exploration. The first four categories are tangible assets while mineral exploration is intangible. According to the 1993 SNA, the acquisition of computer software is also recorded as gross fixed capital formation.

External Transactions

The source is the Balance of Payments, compiled by the Bank of Namibia and trade statistics compiled by the NSA. The two compilation methodologies, as expounded in the 2008 SNA and the Balance of Payments Manual, six edition, are completely harmonized. The surplus/deficit in the current account of the balance of payments Manual are by definition the same as lending/borrowing in the SNA. However, the classification and presentation of transactions are somewhat different in the national accounts.

There are three main components of the balance on the current account:

Balance of goods and services. Include imports and exports of goods and services

Balance of primary incomes. Primary incomes include compensation of employees and property income, for example interest and dividends.

Balance of current transfers. This item includes all unrequited current transactions between residents and non-residents.

The classification by products in the tables is made in accordance with ISIC, i.e. the products are classified as originating in the industries that normally produce them. Direct purchases by non-residents in Namibia are included in exports of services in the tables although it comprises all direct purchases, of goods as well as services.

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List of Terms and Definition

Compensation of employees: Consist of all payments in cash and in kind, by producers to employees.

Consumption of fixed capital: Represents the reduction in the value of the fixed assets used in production during the accounting period resulting from physical deterioration, normal obsolescence or normal accidental damage.

Exports of goods are valued FOB (free on board): This is the value in the market at the frontier of the country, including the costs of transport and export duties.

Financial Services indirectly measured (FISIM): The total property income received by financial intermediaries minus their total interest payable, excluding the value of any property income receivable from the investment of their own funds.

Household consumption: The expenses which households make on goods, durable as well as non-durable, and services.

Imports of goods CIF (cost, insurance, freight): this is the value in the market at the frontier of the country, including all charges for transport and insurance from the country of export, but excluding customs duties.

International Standard Industrial Classification of all Economic Activities (ISIC): A classification standard that is used to classify various activities.

Gross domestic product (GDP): The measure of the total value added (total value of the goods and services produced within the country less raw materials, and other goods and services consumed during the production process) in all resident producing units.

Gross fixed capital formation (GFCF): The total value of a producer’s acquisitions, less disposals, of fixed assets during the accounting period plus certain additions to the value of non - produced assets realized by the productive activity of institutional units.

Gross national income (GNI): A measure of the income earned, whether domestically or abroad, by the factors of production owned by residents.

Primary incomes: Incomes that accrue to institutional units as a consequence of their involvement in processes of production or ownership of assets that may be needed for purposes of production.

Subsidies: They are current unrequited payments that government units, including non-resident government units, make to enterprises on the basis of the levels of their production activities or the quantities or values of the goods or services, which they produce, sell or import.

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Gross national disposable income (GNDI): Measures the income available to the nation for final consumption and gross saving.

Southern African Customs Union (SACU): A union with Botswana, Lesotho, Namibia, South Africa and Swaziland as member countries.

ANNUAL NATIONAL ACCOUNTS 2017 48Namibia Statistics AgencyP.O. Box 2133, FGI House, Post Street Mall,Windhoek, Namibia

Tel: +264 61 431 3200Fax: +264 61 431 3253

Email: info@nsa.org.nawww.nsa.org.na