WINDHOEK Aug 30 (Reuters) - Namibia's diamond output more than halved in the second quarter of this year to 208,000 carats as economic woes hit demand, financial group Capricorn Investment Holdings said on Tuesday.

"On average, production was only 45 percent of what it was in the same quarter of last year. This is the lowest level of production seen since the first quarter of 2009," the firm, citing ministry of mines figures, said in a research note.

"Over the past two years production has fallen significantly, due to the fall in demand for gem quality stones after the 2008 recession."

Capricorn said Namibia would soon hit reach its maximum production potential unless serious investment, which miners have so far been unwilling to commit, was poured into technology and infrastructure.

Uranium production for the quarter fell to 2.09 million pounds from 2.35 million pounds in the previous quarter.

"This was largely due to adverse weather conditions, with some of the mines becoming flooded with the abnormally heavy rains seen this year," it said.

Rio Tinto and Australian miner Paladin Energy are uranium producers in Namibia.