Namibia's Q3 economy contracts by 1 pct

Namibia's economy contracted by 1.0 percent year on year in the third quarter of 2016, according to data released Thursday by the Namibia Statistics Agency.

This was compared to an economic growth rate of 5.0 percent registered in the corresponding quarter of 2015, the data showed.

According to the agency, the economy contraction was caused by poor performance in the mining, construction, public administration and defense sectors that registered a reduction in real value added.

Despite the poor performance of the economy, other sectors such as agriculture, hotels and restaurants, financial intermediation and transport and communication sectors recorded stronger growth.

The data released Thursday also showed annualized average inflation rate is estimated to have recorded 6.9 percent in the third quarter of 2016, compared to 3.3 percent in the same quarter last year.

The annual inflation rate for Nov. 2016 increased to 7.3 percent from 3.3 percent recorded in November 2015, said the index.

This was a result of the general price increases mainly from food and non-alcoholic beverages, hotels, cafes and restaurant, housing, water, electricity and other fuels.

Economist Rowland Brown said Thursday that the contraction means that Namibia is now officially in a recession. The southern African country's economy contracted by 1.2 percent in the second quarter. Endit