Producer prices dip in Q1 2025 as mining slumps, manufacturing shines
The Producer Price Index (PPI) for production in Q1 2025 revealed a complex economic landscape, with a 1.2% quarter-on-quarter (QoQ) decline reflecting weakened price dynamics, particularly in the Mining and Quarrying sector.
Despite this, the PPI recorded a 2.8% year-on-year (YoY) increase, underscoring resilience in certain sectors, notably Manufacturing, which emerged as a key driver of growth, according to the Namibia Statistics Agency.
The Mining and Quarrying sector faced significant headwinds, with its PPI dropping 10% QoQ from 102.4 to 92.2 basis points. This sharp decline was primarily driven by plummeting prices in key commodities, including salt (-30.7%), uranium (-19.5%), diamonds (-10.8%) and zinc (-2.9%).
On an annual basis, the sector’s PPI fell by 4% compared to Q1 2024, moving from 96.1 to 92.2 basis points. However, a remarkable 44.9% surge in gold prices provided some relief, partially offsetting the broader sectoral downturn.
In stark contrast, the Manufacturing sector displayed robust growth, with its index rising by 6.2 basis points from 108.3 in Q4 2024 to 114.6 in Q1 2025, translating to a 5.8% QoQ increase. Key sub-sectors driving this performance included diamond cutting and polishing, which soared by 21.2%, and the manufacture of non-metallic mineral products like cement, which grew by 20.8%. Other notable contributors included grain mill products (5.8%) and onshore fish processing (3.6%).
On a year-on-year basis, the Manufacturing index recorded an even stronger 11.1% growth, climbing from 103.1 basis points in Q1 2024 to 114.6 in Q1 2025. This surge was propelled by significant price increases in meat processing and preservation (12.2%), cement and other non-metallic mineral products (12.1%), diamond cutting and polishing (4.9%), non-alcoholic beverages (4.8%), and alcoholic beverages (2.5%). The sector’s strong performance highlights its role as a stabilising force amid broader economic challenges.
Meanwhile, the Electricity Generation, Transmission and Distribution sector remained a picture of stability, with its PPI index holding steady at 100.0 basis points both QoQ and YoY since Q3 2024. This consistency reflects a lack of price volatility in the sector, providing a neutral backdrop to the more dynamic shifts in Mining and Manufacturing.
Despite this, the PPI recorded a 2.8% year-on-year (YoY) increase, underscoring resilience in certain sectors, notably Manufacturing, which emerged as a key driver of growth, according to the Namibia Statistics Agency.
The Mining and Quarrying sector faced significant headwinds, with its PPI dropping 10% QoQ from 102.4 to 92.2 basis points. This sharp decline was primarily driven by plummeting prices in key commodities, including salt (-30.7%), uranium (-19.5%), diamonds (-10.8%) and zinc (-2.9%).
On an annual basis, the sector’s PPI fell by 4% compared to Q1 2024, moving from 96.1 to 92.2 basis points. However, a remarkable 44.9% surge in gold prices provided some relief, partially offsetting the broader sectoral downturn.
In stark contrast, the Manufacturing sector displayed robust growth, with its index rising by 6.2 basis points from 108.3 in Q4 2024 to 114.6 in Q1 2025, translating to a 5.8% QoQ increase. Key sub-sectors driving this performance included diamond cutting and polishing, which soared by 21.2%, and the manufacture of non-metallic mineral products like cement, which grew by 20.8%. Other notable contributors included grain mill products (5.8%) and onshore fish processing (3.6%).
On a year-on-year basis, the Manufacturing index recorded an even stronger 11.1% growth, climbing from 103.1 basis points in Q1 2024 to 114.6 in Q1 2025. This surge was propelled by significant price increases in meat processing and preservation (12.2%), cement and other non-metallic mineral products (12.1%), diamond cutting and polishing (4.9%), non-alcoholic beverages (4.8%), and alcoholic beverages (2.5%). The sector’s strong performance highlights its role as a stabilising force amid broader economic challenges.
Meanwhile, the Electricity Generation, Transmission and Distribution sector remained a picture of stability, with its PPI index holding steady at 100.0 basis points both QoQ and YoY since Q3 2024. This consistency reflects a lack of price volatility in the sector, providing a neutral backdrop to the more dynamic shifts in Mining and Manufacturing.
