0.8% GDP growth forecast for 2018

OGONE TLHAGE The Bank of Namibia expects the economy to get out of its recessionary state and register growth of 0.6%. The central bank this week released its revised growth estimates following the conclusion of a visit by the International Monetary Fund earlier this month.“Domestic growth for 2017 is estimated to slow down to 0.6%, from 1.1% in 2016,” the Bank of Namibia said.The slowed growth was attributed to contractions in the construction sector and retail trade and slow growth rates for manufacturing, the Bank of Namibia said.“This slowdown is mainly on account of deeper than previously expected contractions in sectors such as construction and wholesale and retail trade, as well as slower growth rates for manufacturing, electricity and water, and the public sector,” the Bank of Namibia said.Growth was also expected to pick up remarkably from the 2016 and 2017 lows for the next three years.“Growth is expected to improve to 2.2% and 3.1% in 2018 and 2019, respectively. This growth will be supported mainly by anticipated improvements in uranium mining, wholesale and retail trade, manufacturing, transport and communication sectors,” the Bank of Namibia said.Despite the optimism, the outlook for uranium mining was not too positive while the ministry’s fiscal consolidation stance was also expected to stem growth, the Bank of Namibia said.“Risks to the domestic economic outlook remain, although somewhat moderated, but the persistently low uranium price remains a major risk. Risks to the domestic outlook include persistently low international prices for uranium, slow growth amongst some of Namibia’s key trading partners and challenges associated with the implementation of fiscal consolidation,” the central bank said while the outlook for the agricultural sector was also not too rosy.“Furthermore, weather conditions remain a risk for the future rainy seasons and may adversely affect performance in the agricultural sector,” the Bank of Namibia said.IMF mission head Geremia Palomba recently expressed confidence that the economy would recover in the years 2018 and beyond during a conclusion of a consultation visit to Windhoek. According to him, mining and construction would help drive growth.“Growth is projected to resume in 2018 and accelerate thereafter to about 4% as production from new mines ramps up and manufacturing and retail activities recover.”

0.8% GDP growth forecast for 2018

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Namibian Sun 2025-05-16

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0.8% GDP growth forecast for 2018

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Namibian Sun 2025-05-16

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