Namibia Economy

Is Namibia a rich country?

Namibia’s economy is heavily dependent on the extraction and processing of minerals for export. Mining accounts for about 12.5% of GDP, but provides more than 50% of foreign exchange earnings. Rich alluvial diamond deposits make Namibia a primary source for gem-quality diamonds. Marine diamond mining is increasingly important as the terrestrial diamond supply has dwindled. The rising cost of mining diamonds, especially from the sea, combined with increased diamond production in Russia and China, has reduced profit margins. Namibian authorities have emphasized the need to add value to raw materials, do more in-country manufacturing, and exploit the services market, especially in the logistics and transportation sectors.

Namibia is one of the world’s largest producers of uranium. The Chinese-owned Husab uranium mine began producing uranium ore in 2017, and is expected to reach full production in August 2018 and produce 15 million pounds of uranium a year. Namibia also produces large quantities of zinc and is a smaller producer of gold and copper. Namibia's economy remains vulnerable to world commodity price fluctuations and drought.

Namibia normally imports about 50% of its cereal requirements; in drought years, food shortages are problematic in rural areas. A high per capita GDP, relative to the region, obscures one of the world's most unequal income distributions; the current government has prioritized exploring wealth redistribution schemes while trying to maintain a pro-business environment. GDP growth in 2017 slowed to about 1%, however, due to contractions in both the construction and mining sectors, as well as an ongoing drought. Growth is expected to recover modestly in 2018.

A five-year Millennium Challenge Corporation compact ended in September 2014. As an upper middle income country, Namibia is ineligible for a second compact. The Namibian economy is closely linked to South Africa with the Namibian dollar pegged one-to-one to the South African rand. Namibia receives 30%-40% of its revenues from the Southern African Customs Union (SACU); volatility in the size of Namibia's annual SACU allotment and global mineral prices complicates budget planning.

Namibia Economy Data

What is the GDP of Namibia?

GDP - Gross Domestic Product (PPP) $23,480,000,000 (USD)
GDP - official exchange rate $12,860,000,000 (USD)
GDP - real growth rate 4.8%
GDP Per Capita $11,300.00 (USD)
GDP by Sector- agriculture 6.2%
GDP by Sector- Industry 30%
GDP by Sector- services 63.8%
GDP - composition, by end use household consumption: 69.2%

government consumption: 27.3%

investment in fixed capital: 29.9%

investment in inventories: -1.2%

exports of goods and services: 39.6%

imports of goods and services: -64.8%
Population Below Poverty Line 55.8%
Inflation Rate 4.6%
Labor Force 729,000
Labor Force By Occupation- agriculture 16.3%
Labor Force By Occupation- industry 22.4%
Labor Force By Occupation- services 61.3%
Labor Force by Occupation - note about half of Namibia's people are unemployed while about two-thirds live in rural areas; roughly two-thirds of rural dwellers rely on subsistence agriculture
Unemployment Rate 51.2%
Fiscal Year 1 April - 31 March
Annual Budget $2,997,000,000 (USD)
Budget Surplus or Deficit - percent of GDP -6.5%
Public Debt (% of GDP) 39.6%
Taxes and other revenues - percent of GDP 35.2%
Major Industries meatpacking, fish processing, dairy products; mining (diamond, lead, zinc, tin, silver, tungsten, uranium, copper)
Industrial Growth Rate 6.5%
Agriculture Products millet, sorghum, peanuts; livestock; fish
Currency Code Namibian dollar (NAD); South African rand (ZAR)
Commercial Bank Prime Lending Rate 9.25%

Labor Force by Occupation- As reported by Namibia

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