CHART OF THE WEEK
In 2023, Southern African Development Community (SADC) nations averaged a real gross domestic product (GDP) growth rate of 3.8% and an annual inflation rate of 10.4%. This is in line with the average of non-SADC African nations.Namibia achieved a 2023 real GDP growth rate of 4.2%, with 2023 annual inflation at 5.9%, placing it in the preferred quadrant relative to other SADC nations.
Namibia's growth was once again led by mining and quarrying, thanks to better output for diamonds, uranium and other commodities, along with increased mineral exploration (including oil and gas). However, the non-mining economy has also shown encouraging recovery.
South Africa continues to struggle with real GDP growth, ranking lowest across all SADC nations with an annual growth rate of 0.6%. Inflation during the year came to 6%.
High inflation across all nations was largely driven by highly volatile fuel and food prices amid geopolitical tensions and adverse global weather conditions during the year causing supply chain constraints.
In lower-income SADC nations, inflation tends to be significantly higher than middle-to-high-income nations as their inflation baskets are heavily weighted towards food. If an inflation basket is not regularly updated, reported inflation may be significantly different than what the population, on average, actually experiences - as expenditure patterns are constantly changing.