Namibia Economy Profile 2009

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 fourth-largest exporter of nonfuel minerals in Africa, the world's fifth-largest producer of uranium, and the producer of large quantities of lead, zinc, tin, silver, and tungsten. The mining sector employs only about 3% of the population while about half 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. The Namibian economy is closely linked to South Africa with the Namibian dollar pegged one-to-one to the South African rand. Increased payments from the Southern African Customs Union (SACU) put Namibia's budget into surplus in 2007 for the first time since independence, but SACU payments will decline after 2008 as part of a new revenue sharing formula. Increased fish production and mining of zinc, copper, uranium, and silver spurred growth in 2003-07, but growth in recent years was undercut by poor fish catches and high costs for metal inputs.

GDP (purchasing power parity)

$13.25 billion (2008 est.)
$12.87 billion (2007 est.)
$12.2 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$8.456 billion (2008 est.)

GDP - real growth rate

2.9% (2008 est.)
5.5% (2007 est.)
7.1% (2006 est.)

GDP - per capita (PPP)

$6,300 (2008 est.)
$6,200 (2007 est.)
$6,000 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 9%
industry: 37%
services: 54% (2008 est.)

Population below poverty line

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

Labor force

686,000 (2008 est.)

Labor force - by occupation

agriculture: 47%
industry: 20%
services: 33% (1999 est.)

Unemployment rate

5% (2008 est.)

Household income or consumption by percentage share

lowest 10%: 0.5%
highest 10%: 64.5% (2003)

Distribution of family income - Gini index

70.7 (2003)

Investment (gross fixed)

23.4% of GDP (2008 est.)

Budget

revenues: $2.661 billion
expenditures: $2.745 billion (2008 est.)

Public debt

22.7% of GDP (2008 est.)
38.5% of GDP (2004 est.)

Inflation rate (consumer prices)

10.3% (2008 est.)
6.7% (2007 est.)

Central bank discount rate

10% (31 December 2008)
10.5% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
12.88% (31 December 2007)

Stock of money

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

Stock of quasi money

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

Stock of domestic credit

$3.43 billion (31 December 2008)
$4.446 billion (31 December 2007)

Industries

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

Industrial production growth rate

0.8% (2008 est.)

Electricity - production

1.606 billion kWh (2007 est.)

Electricity - production by source

NA

Electricity - consumption

3.194 billion kWh (2006 est.)

Electricity - exports

40 million kWh (2007 est.)

Electricity - imports

1.948 billion kWh; note - electricity supplied by South Africa (2006 est.)

Oil - production

0 bbl/day (2007 est.)

Oil - consumption

19,840 bbl/day (2006 est.)

Oil - imports

17,750 bbl/day (2005)

Oil - exports

0 bbl/day (2005)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

62.29 billion cu m (1 January 2008 est.)

Current Account Balance

$156.8 million (2008 est.)
$693.2 million (2007 est.)

Agriculture - products

millet, sorghum, peanuts, grapes; livestock; fish

Exports

$2.791 billion (2008 est.)
$2.922 billion (2007 est.)

Exports - commodities

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

Imports

$3.502 billion (2008 est.)
$3.102 billion (2007 est.)

Imports - commodities

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

Reserves of foreign exchange and gold

$1.293 billion (31 December 2008 est.)
$896 million (31 December 2007 est.)

Debt - external

$797.7 million (31 December 2008 est.)
$1.003 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$NA

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$618.7 million (31 December 2008)
$702 million (31 December 2007)
$541.8 million (31 December 2006)

Economic aid - recipient

ODA, $123.4 million (2005 est.)

Currency (code)

Namibian dollar (NAD); South African rand (ZAR)

Currency (code)

NAD; ZAR

Exchange rates

Namibian dollars (NAD) per US dollar - 7.75 (2008 est.), 7.18 (2007), 6.7649 (2006), 6.3593 (2005), 6.4597 (2004)

Fiscal year

1 April - 31 March