After relatively large fluctuations in the pre-independence period, real GDP per capita recorded an average growth of about 1.9% between 1990-99. Thus both real income and per capita real income have shown consistent declines since the period after independence. It is this fall in general living standards that represents our challenge.
The Namibian economic performance since 1994 has not been sufficient for providing jobs for a labour force that grew by more than 3% annually. We have also registered a decline in total factor productivity. This last factor is very worrisome since it implies that for every unit of capital invested in the economy, less and less output is received in return.