Namibia Economy Profile 2012

Economy - overview

The economy is heavily dependent on the extraction and processing of minerals for export. Mining accounts for 8% of GDP, but provides more than 50% of foreign exchange earnings. Rich alluvial diamond deposits make Namibia a primary source for gem-quality diamonds. Namibia is the world's fourth-largest producer of uranium. It also produces large quantities of zinc and is a small producer of gold and other minerals. The mining sector employs only about 3% of the population while about 35-40% of the population depends on subsistence agriculture for its livelihood. Namibia normally imports about 50% of its cereal requirements; in drought years food shortages are a major problem in rural areas. A high per capita GDP, relative to the region, hides one of the world's most unequal income distributions, as shown by Namibia's 70.7 GINI coefficient. The Namibian economy is closely linked to South Africa with the Namibian dollar pegged one-to-one to the South African rand. Until 2010, Namibia drew 40% of its budget revenues from the Southern African Customs Union (SACU). Increased payments from SACU put Namibia's budget into surplus in 2007 for the first time since independence. SACU allotments to Namibia increased in 2009, but will drop for 2010 and 2011 because South Africa went into recession during the global economic crisis, reducing overall SACU income. Increased fish production and mining of zinc, copper, and uranium spurred growth in 2003-08, but growth in recent years was undercut by poor fish catches, a dramatic decline in demand for diamonds, higher costs of producing metals, and the global recession. A rebound in diamond and uranium prices in 2010 provided a significant boost to Namibia's mining sector. Copper mines, which closed in 2008, are slated to reopen in 2011.

GDP (purchasing power parity)

$14.6 billion (2010 est.)
$13.98 billion (2009 est.)
$14.1 billion (2008 est.)
note: data are in 2010 US dollars

GDP (official exchange rate)

$11.87 billion (2010 est.)

GDP - real growth rate

4.4% (2010 est.)
-0.8% (2009 est.)
4.3% (2008 est.)

GDP - per capita (PPP)

$6,900 (2010 est.)
$6,600 (2009 est.)
$6,700 (2008 est.)
note: data are in 2010 US dollars

GDP - composition by sector

agriculture: 7.3%
industry: 34.3%
services: 58.4% (2010 est.)

Population below poverty line

55.8%
note: the UNDP's 2005 Human Development Report indicated that 34.9% of the population live on $1 per day and 55.8% live on $2 per day (2005 est.)

Labor force

789,100 (2010 est.)

Labor force - by occupation

agriculture: 16.3%
industry: 22.4%
services: 61.3%
note: statistics are for the formal sector only; 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 (2008 est.)

Unemployment rate

51.2% (2008 est.)
36.7% (2004 est.)

Unemployment, youth ages 15-24

total: 41.7%
male: 36.7%
female: 47.1% (2004)

Household income or consumption by percentage share

lowest 10%: 1.1%
highest 10%: 53% (2008)

Distribution of family income - Gini index

70.7 (2003)

Investment (gross fixed)

22.3% of GDP (2010 est.)

Budget

revenues: $3.103 billion
expenditures: $3.874 billion (2010 est.)

Taxes and other revenues

26.2% of GDP (2010 est.)

Budget surplus (+) or deficit (-)

-6.5% of GDP (2010 est.)

Public debt

20.1% of GDP (2010 est.)
14.8% of GDP (2009 est.)

Inflation rate (consumer prices)

4.5% (2010 est.)
8.8% (2009 est.)

Central bank discount rate

12% (31 December 2010 est.)
7% (31 December 2009 est.)

Commercial bank prime lending rate

9.72% (31 December 2010 est.)
11.12% (31 December 2009 est.)

Stock of narrow money

$3.653 billion (31 December 2010 est.)
$2.839 billion (31 December 2009 est.)

Stock of money

$1.983 billion (31 December 2008)
$2.149 billion (31 December 2007)

Stock of broad money

$8.078 billion (31 December 2010 est.)
$6.595 billion (31 December 2009 est.)

Stock of quasi money

$1.158 billion (31 December 2008)
$1.493 billion (31 December 2007)

Stock of domestic credit

$6.553 billion (31 December 2010 est.)
$4.726 billion (31 December 2009 est.)

Market value of publicly traded shares

$1.176 billion (31 December 2010)
$846.3 million (31 December 2009)
$618.7 million (31 December 2008)

Agriculture - products

millet, sorghum, peanuts, grapes; livestock; fish

Industries

meatpacking, fish processing, dairy products; mining (diamonds, lead, zinc, tin, silver, tungsten, uranium, copper)

Industrial production growth rate

6.5% (2010 est.)

Electricity - production

2.197 billion kWh (2008 est.)

Electricity - production by source

NA

Electricity - consumption

3.928 billion kWh (2008 est.)

Electricity - exports

47 million kWh (2008 est.)

Electricity - imports

2.1 billion kWh (2008 est.)

Oil - production

0 bbl/day (2010 est.)

Oil - consumption

24,000 bbl/day (2010 est.)

Oil - exports

0 bbl/day (2009 est.)

Oil - imports

19,890 bbl/day (2009 est.)

Oil - proved reserves

0 bbl (1 January 2011 est.)

Natural gas - production

0 cu m (2009 est.)

Natural gas - consumption

0 cu m (2009 est.)

Natural gas - exports

0 cu m (2009 est.)

Natural gas - imports

0 cu m (2009 est.)

Natural gas - proved reserves

62.29 billion cu m (1 January 2011 est.)

Current Account Balance

$11.35 million (2010 est.)
-$160.9 million (2009 est.)

Exports

$4.115 billion (2010 est.)
$3.535 billion (2009 est.)

Exports - commodities

diamonds, copper, gold, zinc, lead, uranium; cattle, processed fish, karakul skins

Imports

$4.904 billion (2010 est.)
$4.519 billion (2009 est.)

Imports - commodities

foodstuffs; petroleum products and fuel, machinery and equipment, chemicals

Reserves of foreign exchange and gold

$1.495 billion (31 December 2010 est.)
$1.846 billion (31 December 2009 est.)

Debt - external

$3.101 billion (31 December 2010 est.)
$2.199 billion (31 December 2009 est.)

Stock of direct foreign investment - at home

$NA

Stock of direct foreign investment - abroad

$NA

Exchange rates

Namibian dollars (NAD) per US dollar -
7.57 (2010)
8.42 (2009)
7.75 (2008)
7.18 (2007)
6.7649 (2006)