GROSS DOMESTIC PRODUCT SECOND QUARTER 2015 SEPTEMBER Namibia Statistics Agency. Gross Domestic Product Second Quarter 2015

Transcription

1 GROSS DOMESTIC SEPTEMBER 2015 PRODUCT SECOND QUARTER 2015 Gross Domestic Product Second Quarter 2015 Namibia Statistics Agency 1

2 Forth coming issue Expected release date Gross Domestic Product Third Quarter 2015 December Gross Domestic Product Second Quarter 2015

3 Our Mission In a coordinated manner produce and disseminate relevant, quality and timely statistics that are fit-for-purpose in accordance with international standards and best practice. Our Vision To be a high performance institution in statistics delivery Our Shared Values Excellent Performance Integrity Service focus Transparency Accuracy Partnership Gross Domestic Product Second Quarter

4 PREFACE This publication presents an overview of economic developments during the second quarter of Quarterly Gross Domestic Product (GDP) estimates assist in the analysis of short-term movements in the economy, as opposed to the annual GDP that provides in-depth and comprehensive view of the changes in the economy. Other economic indicators such as volume indices of production, distributive trade indices and levels of employment can also be used for that purpose. The quarterly data presented in this publication are based on the 2010 base year. The real GDP for the second quarter of 2015 recorded a slower growth of 4.2 percent compared to 5.0 percent registered in the corresponding quarter of The slow growth is mostly attributed to the mining and quarrying, manufacturing and fishing sectors that recorded declines in real value added of 10.2 percent, 5.7percent and 2.8 percent, respectively. I would therefore, like to emphasise the importance of accurate and timely delivery of data from our stakeholders in the private and public sectors to the Namibia Statistics Agency (NSA), on which the compilation of quarterly GDP depends. In this regard, I wish to express my appreciation to all data providers, both institutions and individuals without whose assistance the publication would not have been possible. SIKONGO HAIHAMBO ACTING STATISTICIAN GENERAL Windhoek, September 2015 In contrast to the slower performance of the above sectors, the economy managed a sturdy performance in sectors such as construction; transport and communication; and utilities that recorded growths in real value added of 48.9 percent, 6.5 percent, and 1.9 percent, respectively. 2 Gross Domestic Product Second Quarter 2015

5 CONTENTS Preface...2 Contents...3 List of Tables...4 List of Figures...5 Introduction...6 Revisions...7 Sources and Timeliness...8 Key findings...9 Agriculture and forestry... 9 Fishing and fish processing on board Mining and quarrying Manufacturing Electricity and water Construction Wholesale and retail trade Hotels and restaurants Transport and communication Financial intermediation Public Administration, defence, education and health Methodological Notes...33 NOTES...34 Gross Domestic Product Second Quarter

6 LIST OF TABLES Table 1 Sectoral growth rate revisions for the first quarter of Table 2: Quarterly Gross Domestic Product by Activity in Constant 2010 Prices - million N$ Table 2: Quarterly Gross Domestic Product by Activity in Constant 2010 Prices - million N$ (Cont) Table 3: Quarterly Gross Domestic Product by Activity in Constant 2004 Prices Percentage changes Table 3: Quarterly Gross Domestic Product by Activity in Constant 2004 Prices Percentage changes Gross Domestic Product Second Quarter 2015

7 LIST OF FIGURES Figure 1: GDP growth...9 Figure 2: Agriculture Real Value Added growth rate...10 Figure 3: Number of livestock marketed, Volume index 2010 = Figure 4: Fish and Fish processing on board Real Value Added growth rate...11 Figure 5: Fish landings, Volume index 2010 = Figure 6: Mining and Quarrying Real Value Added growth rate...12 Figure 7: Total mining production...13 Figure 8: Diamond production and sales in thousands of carats...13 Figure 9: Metal Ores Volume Index 2010 = Figure 10: Uranium productions in Short tons...14 Figure 11: Manufacturing Real Value Added growth rate...15 Figure 12: Grain mill product, Manufacture other metal products, Manufacture of basic non-ferrous Metal Value Added Figure 13: Diary products, Fish processing on shore and Meat processing value added Figure 14: Diamond processing turnover - N$ thousands...17 Figure 15: Electricity and Water sector Real Value Added growth rate...18 Figure 16: Electricity and Water subsectors Real Value Added...18 Figure 17: Sales of electricity in millions of KWH...19 Figure18: Sources of electricity in millions of KWH...19 Figure 19: Construction Real Value Added growth rate...20 Figure 20: Real value of Government Expenditure on construction Million N$ Figure 21: Value of buildings completed Millions N$...21 Figure 22: Wholesale and retail trade Real Value Added growth rate...22 Figure 23: Revenue of Wholesale and retail trade Millions N$...22 Figure 24: Hotel and restaurants Value Added growth rate...23 Figure 25: Growth rate in number of bed nights and room nights sold...23 Figure 26: Transport and communication Real Value Added growth rate...24 Figure 27: Volume of Freight Transported in Thousands of Tonnes...25 Figure 28: Cargo Handled in Thousands of Tones...25 Figure 29: Financial intermediation Value Added growth rate...26 Figure 30: Banking and insurance Value Added...27 Figure 31: Deposits and claims...27 Figure 32: Public administration and defence, education and health Real Value Added growth rate Gross Domestic Product Second Quarter

8 INTRODUCTION The main purpose of compiling quarterly national accounts is to provide a timely and frequent picture of the current economic developments than the annual national accounts can provide. Quarterly data determine the shortterm movements in the series, while the annual data determines the overall level and long-term movements in the series. In principle, the only difference between quarterly and annual national accounts is the reference period. The definitions and conceptual frameworks, as well as the accounts and accounting identities of the 1993 System of National Accounts (SNA) are equally valid for both accounts. In practice, the constraint of data availability and resources leads to incomplete quarterly national accounts as compared to the annual national accounts. The NSA has started the compiling quarterly GDP at constant prices as a first step in compiling full quarterly national accounts. Since quarterly and annual estimates are often based on different kinds of data sources, the annual total derived from the sum of the four quarters under consideration differs from annual estimates based on a more comprehensive source data. Therefore, in order to make them comparable, quarterly estimates are benchmarked on their annual estimates. Benchmarking is the process of combining a time series of high frequency data with less frequent but more accurate data. Benchmarking is the process of combining a time series of high frequency data with less frequent but more accurate data. 6 Gross Domestic Product Second Quarter 2015

9 REVISIONS Revisions are part of good quarterly national accounts compilation practice because they provide users with more accurate data. It provides the opportunity to incorporate new and more accurate information, and thereby improve the accuracy of the estimates without introducing breaks in the time series. Due to the availability of more comprehensive data, revisions are made to estimates for quarters of the last three years. The revisions made in the first quarter of 2015 are outlined in Table 1 below. Based on the revised changes, the GDP figure for the first quarter of 2015 increased to 5.3 percent. The revision in the data was necessitated by the updated data received from sources. Table 1: Sectoral growth rate revisions for the first quarter of 2015 Sector First quarter 2015 in Revised first quarter in percent as recorded 2015 percent Difference Agriculture Fishing Mining and quarrying Manufacturing Electricity and water Construction Wholesale and retail trade Hotels and restaurants Transport and communication Financial intermediation Real estate activities and business services Public administration Education Health Other private services FISIM All industries at basic prices Taxes on products GDP Gross Domestic Product Second Quarter

10 SOURCES AND TIMELINESS The sources for quarterly national accounts are quarterly economic surveys and administrative data. Quarterly GDP estimates are released with a time lag of 90 days from the reference quarter. 8 Gross Domestic Product Second Quarter 2015

11 KEY FINDINGS Year-on-year, the GDP of the second quarter for 2015 recorded a slow growth of 4.2 percent as compared to an increase of 5.0 percent registered in the corresponding quarter of 2014 (Figure 1). The slow growth was mainly attributed to the declines in real value added recorded in the mining and quarrying, manufacturing and fishing sectors of 10.2 percent, 5.7 percent and 2.8 percent, respectively. However, construction, transport and communication, and the utility sectors recorded growths in real value added of 48.9 percent, 6.5 and 1.9 percent, respectively. Figure 1: GDP growth Percentage Agriculture and forestry Agriculture sector slowed during second quarter of 2015 and is estimated to have grown by 3.1 percent in real value added compared to a growth of 9.7 percent of the corresponding quarter in 2014 (Figure 2). The slow growth in the sector is attributed to crop farming subsector that declined by 16.6 percent in real value added compared to an increase of 20.6 percent recorded in the same quarter of The contraction in the subsector is due to the drought prevailing in Namibia. GDP Growth rate On the other hand, livestock farming recorded a strong growth of 14.9 percent in real value added when compared to 5.4 percent registered in the same quarter of The growth is reflected in the increase of the number of cattle and small stock exported on hoof that recorded growth rates of percent and percent respectively, compared to declines of 86.6 percent and 46.0 percent respectively registered in the same quarter of Farmers continue to de-stock as a measure to manage the herd in a drought situation. Gross Domestic Product Second Quarter

12 Figure 2: Agriculture Real Value Added growth rate Percentage Value Added Agriculture The cattle export abattoirs and butchers recorded a decline of 5.6 percent, an improvement as compared to the decline of 17.4 percent recorded in the corresponding quarter. Value Added Livestock Furthermore small stock decelerated by recording a decline of 26.0 percent compared to 15.6 percent recorded in the corresponding quarter of 2014 (Figure 3). Figure 3: Number of livestock marketed, Volume index 2010 = Number of Livestock Index 2010 = Cattle Small stock Pigs 10 Gross Domestic Product Second Quarter 2015

13 Fishing and fish processing on board 1 Fishing and fish processing on board sector is estimated to have registered a decline of 2.8 percent in real value added during the second quarter of 2015 compared to an increase of 5.5 percent recorded in the same quarter of 2014 (Figure 4). Figure 4: Fish and Fish processing on board Real Value Added growth rate Percentage The poor performance in the fishing sector can mainly be attributed to the mid-water trawling fisheries landings that registered a decline of 16.6 percent (Figure 5). Value added Fishing and fish processing on board However, demersal fisheries landings registered a strong growth of 13.9 percent during the period under review compared to a decline of 15.3 percent recorded in the corresponding quarter of The estimate of fishing and fish processing on board is based on preliminary figures. A complete set of data is still being awaited from the industry. Gross Domestic Product Second Quarter

14 Figure 5: Fish landings, Volume index 2010 = Volume index 2010 = Mining and quarrying Demersal Midwater Pelagic Others Mining and quarrying sector growth is estimated to have worsened, registering a decline of 10.2 percent in real value added during the second quarter of 2015 compared to a decline of 1.1 percent recorded in the corresponding quarter of 2014 (Figure 6 and 7). Figure 6: Mining and Quarrying Real Value Added growth rate Gross Domestic Product Second Quarter 2015

15 Figure 7: Total mining production Volume Index:2010= Mining Total mining Index 3 per. Mov. Avg. (Mining Total mining Index) The weak performance in mining and quarrying sector can mainly be attributed to the poor performance of diamond subsector that registered a decline in real value added of 15.8 percent. The decline in the diamond subsector emanates from the low diamond production level due to short term operational and industrial actions (Figure 8). Figure 8: Diamond production and sales in thousands of carats Carats in thousand Production Sales Source: Ministry of Mines and Energy Gross Domestic Product Second Quarter

16 Figure 9: Metal Ores Volume Index 2010 = Volume index:2010= Copper Gold Lead Zinc manganese Source: Ministry of Mines and Energy The uranium production in the uranium subsector recovered in the second quarter of 2015 albeit at a lower rate, recording a decline of 9.1 percent in real value added compared to a decline of 29.5 percent recorded in the same quarter of 2014 (Figure 10). Metal ore subsector estimated to have registered an increase of 55.9 percent in real value added during the period under review compared to a decline of 0.3 percent registered in the same period of This resulted from an increase in the production of gold. Figure 10: Uranium productions in Short tons 2,500 2,000 1,500 Short Tons 1, Source: Ministry of Mines and Energy Production 14 Gross Domestic Product Second Quarter 2015

17 Manufacturing The manufacturing sector is estimated to have contracted, recording a 5.7 percent decline in real value added during the second quarter of 2015 as compared to a decline of 8.2 percent registered in the corresponding quarter of 2014 (Figure 11). Figure 11: Manufacturing Real Value Added growth rate Percentage The improved performance in the manufacturing subsectors is mainly driven by the positive growths of the following subsectors real value added; manufacture of basic non-ferrous metals (3.8 percent), grain mill products (27.6 percent), publishing and printing (25.7 percent), rubber and plastic products (20.8 percent), and beverages (-0.4 percent), respectively (Figure 12). Value Added Manufacturing Gross Domestic Product Second Quarter

18 Figure 12: Grain mill product, Manufacture other metal products, Manufacture of basic non-ferrous Metal Value Added Grain mill Products Other non metallic mineral Basic non Ferrous However, dairy products, fish processing on shore, and meat processing recorded declines in real value added of 14.9 percent, 0.6 percent, and 12.2 percent, respectively (Figure 13). 16 Gross Domestic Product Second Quarter 2015

19 Figure 13: Diary products, Fish processing on shore and Meat processing value added Percentage Diary Products Fish Processing on shore Meat Processing Figure 14: Diamond processing turnover - N$ thousands 160, , , ,000 Thousands N$ 80,000 60,000 40,000 20,000 - Diamond Processing Turnover Gross Domestic Product Second Quarter

20 Electricity and water The utility sector registered growth of 1.9 percent in real value added in the second quarter of 2015 compared to a decline of 3.0 percent in the corresponding quarter of 2014 (Figure 15). Figure 15: Electricity and Water sector Real Value Added growth rate Percentage The growth was mainly driven by the water subsector that recorded an increase of 4.9 percent in real value added during the period under review (Figure 16). Real Value Added Electricity and water The electricity subsector also posted a positive growth of 1.0 percent in the second quarter of 2015 compared to a decline of 1.1 registered in the corresponding quarter of 2014 (Figure 16). Figure 16: Electricity and Water subsectors Real Value Added Percentage Value Added Electricity Value Added Water 18 Gross Domestic Product Second Quarter 2015

21 Figure 17: Sales of electricity in millions of KWH Millions KWH Distributors Mining Others Source: Nampower Figure18: Sources of electricity in millions of KWH 1,400 1,200 1,000 Millions of KWH Own generation Imports Source: Nampower Gross Domestic Product Second Quarter

22 Construction 2 The growth for the construction sector is estimated at 48.9 percent in real value added during the second quarter of 2015 compared to 41.4 percent registered in the corresponding quarter of 2014 (Figure 19). Figure 19: Construction Real Value Added growth rate Percentage Value Added Construction The positive performance in the sector emanated mainly from the construction works for general government 3 that have recorded an increase of 68.6 percent in real value compared to 47.7 percent recorded in the same period of 2014 (Figure 20). In addition, the value of buildings completed during the period under review registered a strong growth of 88.5 percent compared to a decline of 26.2 percent reported in the same period of The growth in the value of buildings completed is recorded in western region and central region that registered increases of percent and 0.5 percent. However, northern region and southern region registered declines of 68.0 percent and 10.0 percent during the period under review (Figure 5). 2 For regional classification, refer to the methodological note at the end of this document. 3 The figure for the government expenditure on construction is preliminary and may be subject to change. 20 Gross Domestic Product Second Quarter 2015

23 Figure 20: Real value of Government Expenditure on construction Million N$ 2,000 1,800 1,600 1,400 Millions of N$ 1,200 1, Figure 21: Value of buildings completed Millions N$ Millions of N$ Source: Municipalities and town councils Central region Western region Eastern region Northern region Southern region Gross Domestic Product Second Quarter

24 Wholesale and retail trade Wholesale and retail trade sector is estimated to have recorded a slow growth of 3.1 percent in real value added in the second quarter of 2015 compared to 6.3 percent registered in the corresponding quarter of 2014 (Figure 19). The slow presentation in this sectors is evident in the revenue of furniture subsector that declined by 5.3 percent in during the under review as compared to 22.4 percent recorded in the same quarter of Figure 22: Wholesale and retail trade Real Value Added growth rate Percentage Wholesale, Retail Trade Value added Figure 23: Revenue of Wholesale and retail trade Millions N$ 9,000 8,000 7,000 6,000 Millions N$ 5,000 4,000 3,000 2,000 1,000 - Supermarkets Vehicles Others Source: Bank of Namibia 22 Gross Domestic Product Second Quarter 2015

25 Hotels and restaurants 4 The hotels and restaurants sector is estimated to have recorded a slow growth of 2.8 percent in real value added during the second quarter of 2015 compared to an increase of 5.3 percent recorded in the same quarter of 2014 (Figure 24). Figure 24: Hotel and restaurants Value Added growth rate Percentage The performance in the sector is as a result of the number of room nights sold that declined by 1.7 percent during the period under review compared to an increase of 0.9 percent registered in the corresponding quarter of On the other hand, the number of bed nights sold increased by 3.6 percent in the second quarter of 2015 compared to a decline of 5.8 percent recorded in the same quarter of 2014 (Figure 25). Figure 25: Growth rate in number of bed nights and room nights sold Percentage Room nights sold Bed nights sold 4 The figures for hotels and restaurants must be interpreted with caution as they are based only on HAN membership. Gross Domestic Product Second Quarter

26 Transport and communication The transport and communication sector picked up momentum in the second quarter of 2015 with a growth rate of 6.5 in real value added compared to 5.8 percent registered in the corresponding quarter of 2014 (Figure 26). This growth emanates from increased activities in telecommunication and post and courier services that grew by 31.6 percent and 1.6 percent. Figure 26: Transport and communication Real Value Added growth rate Percentage Transport Value Added In addition, other sectors that posted positive growths are passenger transport by road (0.3 percent), travel agents and tour operators (0.3 percent) and freight transport by road (0.6 percent). Transport by railway registered a decline of 13.4 percent in the second quarter of 2015; however, when compared to the corresponding quarter of 2014, this is an improvement from a dip of 29.4 percent. However, air transport, airport services and port services subsectors performed poorly by recording negative growth rates of 8.8 percent, 7.6 percent and 3.4 percent, respectively. 24 Gross Domestic Product Second Quarter 2015

27 Figure 27: Volume of Freight Transported in Thousands of Tonnes 2,000 1,800 1,600 1,400 Number of cargo Handled 1,200 1, Landed Shipped Transshipped Source: TransNamib Cargo transported by railway declined from tons in the second quarter of 2014 to tons recorded in the second quarter of However, cargo transported by road increased from tons in the same quarter of 2014 to tons in the second quarter of 2015 (Figure 27). Figure 28: Cargo Handled in Thousands of Tones Tonnage in Thousands Rail Road Source: Namibia Ports Authority In terms of cargo handled at the ports, both that were shipped to the rest of the world and that were in transit, posted a decline of 26.2 percent and 23.9 percent, respectively in the quarter under review. However, cargo that landed at the ports from the rest of the world increased by 20.6 percent in the second quarter of Gross Domestic Product Second Quarter

28 Financial intermediation Financial intermediation slowed down in the second quarter of 2015, recording a growth of 2.5 percent in real value added compared to 9.3 percent in the same quarter of 2014 (Figure 29). Figure 29: Financial intermediation Value Added growth rate Percentage Financial Intermediation Value Added The slow growth in the sector was influenced by the insurance subsector that recorded a sluggish growth of 2.0 percent in the second quarter of 2015 (Figure 30). This was due to the number of insurance policies written that declined by half, for the long term insurance. In the same vein, the banking subsector recorded a slow growth of 2.8 percent in the quarter under review (Figure 30), and this was mainly due to a decline in claims on the central government. 26 Gross Domestic Product Second Quarter 2015

29 Figure 30: Banking and insurance Value Added Percentage Value added Banking service Value Added Insurance & others Figure 31: Deposits and claims 80,000 70,000 60,000 50,000 Millions N$ 40,000 30,000 20,000 10,000 0 Source: Bank of Namibia Deposits by all sectors Claims by private sector Net claims by central government Gross Domestic Product Second Quarter

30 Public Administration, defence, education and health Public administration and defence sector is estimated to register a slow growth of 4.2 percent in real value added in the second quarter of 2015 compared to a growth of 7.7 percent recorded in the corresponding quarter of The health and social work sector estimated a massive growth of 11.1 percent in the first quarter of 2015 compared to a huge decline of 13.1 percent recorded in the same quarter of 2014 (Figure 8). Furthermore, the education sector recorded a strong growth of 10.3 percent in real value added in the second quarter of 2015 as compared to a decline of 18.0 percent recorded in the corresponding quarter of 2014 (Figure 33). Figure 32: Public administration and defence, education and health Real Value Added growth rate Percentage Public Administration and defense Health Education 28 Gross Domestic Product Second Quarter 2015

31 Table 2: Quarterly Gross Domestic Product by Activity in Constant 2010 Prices - million N$ Mining Year Quarter Agriculture Fishing and Manufacturing Electricity Wholesale and water Construction and retail quarrying trade Hotels and restaurants , ,366 2, , , ,391 2, , ,673 2, , ,863 2, , Transport and communication ,335 2, , ,808 2, , ,610 2, , , ,281 2, , , , ,924 2, , , , ,736 2, , , ,171 2, , , , ,767 2, , , ,179 2, , , , ,586 2, , , ,231 2, , , , ,135 2, , , , ,105 2, , , , ,669 2, , , , ,593 2, , , , ,803 2, , , ,521 2, ,009 2, , ,587 2, , , ,677 2, ,025 3, , ,652 2, ,171 3, , ,354 2, ,422 3, , , ,558 2, ,378 2, , ,234 2, ,362 3, , , ,636 2, ,713 3, , , ,339 2, ,030 3, , , ,297 2, ,052 3, ,400 Gross Domestic Product Second Quarter

32 Table 2: Quarterly Gross Domestic Product by Activity in Constant 2010 Prices - million N$ (Cont) Year Quarter Real estate All activities Other GDP at Financial Public indust. Taxes on and Education Health private FISIM market intermediation administration at basic products business services prices prices services ,051 1,579 2,569 1, ,514 1,364 19, ,093 1,610 1,767 1, ,413 1,409 18, ,129 1,644 2,221 1, ,190 1,465 19, ,037 1,681 1,850 1, ,807 1,503 19, ,038 1,721 2,036 1, ,269 1,398 18, ,041 1,750 1,062 1, ,508 1,482 17, ,033 1,767 2,867 1, ,215 1,610 19, ,089 1,772 2,885 1, ,704 1,709 21, ,144 1,766 2,031 1, ,503 1,392 19, ,166 1,770 1,714 1, ,779 1,450 20, ,135 1,784 2,413 1, ,443 1,638 21, ,157 1,808 2,943 1, ,672 1,721 21, ,151 1,841 2,779 1, ,044 1,428 21, ,203 1,871 2,540 1, ,269 1,543 20, ,235 1,898 2,941 1,790 1, ,340 1,695 23, ,275 1,920 1,319 1, ,623 1,863 21, ,275 1,939 4,029 1, ,201 1,698 23, ,282 1,959 2,013 1, ,419 1,698 22, ,305 1,981 2,076 1, ,245 1,798 22, ,332 2,004 1,720 2, ,227 1,914 23, ,462 2,029 3,027 1, ,467 1,714 23, ,502 2,052 2,019 1, ,296 1,883 23, ,547 2,074 3,061 2, ,288 2,079 25, ,611 2,094 2,081 1, ,395 2,258 24, ,602 2,112 2,679 1,908 1, ,869 2,025 24, ,642 2,126 2,174 1, ,394 1,952 24, ,722 2,136 2,989 2, ,878 2,295 26, ,763 2,140 2,269 2, ,582 2,527 27, ,703 2,140 2,696 2,197 1, ,134 2,091 26, ,683 2,140 2,267 2, ,522 2,098 25, Gross Domestic Product Second Quarter 2015

33 Table 3: Quarterly Gross Domestic Product by Activity in Constant 2004 Prices Percentage changes Year Quarter Agriculture Fishing Mining Wholesale Electricity Hotels and Transport and and Manufacturing Construction and retail and water restaurants communication quarrying trade Gross Domestic Product Second Quarter

34 Table 3: Quarterly Gross Domestic Product by Activity in Constant 2004 Prices Percentage changes Year Quarter Real estate All Other GDP at Financial activities Public indust. Taxes on Education Health private FISIM market intermediation and administration at basic products services prices business prices services Gross Domestic Product Second Quarter 2015

35 METHODOLOGICAL NOTES System of National Accounts 1993: The SNA 1993 is an internationally agreed methodology used for compilation of national accounts estimates published by the United Nations in co-operation with other international organizations. This means that the methodology, concepts and classifications are in accordance with the latest guidelines of an internationally agreed system of national accounts. Quarterly GDP estimates: Quarterly estimates of value added in real terms are less comprehensive and therefore need to be aligned to the annual real estimates. Short-term indicators are used to estimate the quarterly GDP. In terms of coverage, quarterly indicators are not as reliable as in instances where the results of annual estimates are used. Therefore, the quarterly estimates must be adapted to the independent annual estimates when such estimates become available. To this extent, the Proportional Denton Method is used. It is a technique that generates a series of the quarterly estimates as proportional to the indicator as possible subject to the restrictions provided by the annual data. Classifications: The estimates of value added by industry are classified according to the third revision of the International Standard Industrial Classification of all Economic Activities (ISIC), with suitable adaptations for Namibian conditions. FISIM: Financial Services Indirectly Measured Regional breakdown: The following regions are represented by municipalities and town councils in respective towns that are surveyed by the NSA; Central region: Windhoek Northern region: Okahandja, Otjiwarongo, Outjo, Grootfontein, Tsumeb, Ondangwa, Oshakati, Ongwediva, Okakarara, Rundu and Katima-Mulilo Eastern region: Gobabis Western region: Swakopmund, Walvis Bay, Henties Bay, Karibib, Usakos and Omaruru Southern region: Keetmanshoop, Mariental, Karasburg, Nami Nüs (Lüderitz) and Rehoboth Gross Domestic Product Second Quarter

36 NOTES 34 Gross Domestic Product Second Quarter 2015

37 Gross Domestic Product Second Quarter

38 Namibia Statistics Agency P. O. Box 2133, Windhoek, FGI House, Post Street Mall 36 Gross Domestic Product Second Quarter 2015