Individual wealth projected to rise to N$88 386
Namibia one of the most unequal countries
Gross domestic product (GDP) per capita is GDP divided by the population.
Gross domestic product (GDP) per capita, which measures individual wealth, is projected to increase from N$82 288.3 in 2022 to N$88 386 in 2023, according to PSG’s Economic Outlook. In 2024, GDP per capita is estimated at N$93 112.6. Namibia has a population of just over 2.5 million people and is categorised as a stable democratic nation. Two-thirds of its population live in rural areas and engage in subsistence farming and livestock production. GDP per capita is projected to average just above US$4100 during 2020-2022; as such, the country is classified as an upper-middle-income country, PSG pointed out.
However, this paints a misleading picture, since the distribution of income is highly unequal. According to the Namibia Statistics Agency (NSA), Namibia’s Gini coefficient was estimated at 57 for 2015-2016 – which improved from 60 in 2009-2010 but is still among the highest in the world.
The NSA estimates that 18% of Namibian households were living below the upper poverty line (US$40 per month) in 2015-2016, with huge variations between urban and rural areas and between ethnic groups, PSG said.
Economy
The domestic economy expanded by 4.6% in 2022 and the real value of the growth was estimated at N$144.1 billion.
During the first and second quarter of 2023, the Namibian economy grew by 5.3% and 3.7%, respectively. Real GDP for the first two quarters of 2023 was estimated at N$38.1 billion and N$38.8 billion.
Meanwhile, the Bank of Namibia (BoN) projects the economy to grow by 3.3% in 2023.
“Strong first half performance, driven by the exploration of Namibia's oil and critical mineral resources, increases in mining activity, wholesale and retail sales, and transport services, prompted us to raise our 2023 economic growth forecast to 3.8% from 3.1%. We forecast real GDP growth to slow to 2.2% in 2024 as the expected global growth slowdown will weigh on Namibian exports while elevated domestic interest rates will curb private consumption,” PSG [email protected]