Economy in the toilet

30 April 2020 | Economics

OGONE TLHAGE

WINDHOEK



The economy is expected to contract by 6.9% this year, the Bank of Namibia said in a quarterly economic update released this week.

The slowdown in economic activity is a consequence of the coronavirus pandemic, the central bank noted. “The deep contraction estimated for 2020 is attributed to the outbreak of the coronavirus, which led to travel restrictions across the world and lockdowns in many countries,” the Bank of Namibia said. The Namibian economy was expected to show modest recovery of 1.5% this year, the central bank's previous projections showed.

“The 6.9% contraction estimated for 2020 is a severe deterioration from a 1.5% growth that was projected in the February 2020 update. The sectors expected to be most affected by travel restrictions include hotels and restaurants, mining and quarrying, and beverages, among others. This forecast assumes that travel restrictions will remain in place until the end of July 2020.”



All sectors hit

The mining sector, which falls under the primary industry, is expected to contract by 14.5%. Mines were required to scale down production to stem the spread of the coronavirus.

“Primary industries are projected to record a huge contraction during 2020, with a moderate recovery expected in 2021.







Primary industries are projected to contract by 9.8 percent in 2020 and to recover to a growth of 3.1% in 2021. The 9.8% contraction is much deeper when compared to a growth of 2.6 percent published in the February 2020 update. The mining industry is now expected to contract by 14.5%.”

Diamond mining is expected to show the deepest decline in the entire sector, marking an almost 15% reduction in its growth.

“Diamond mining is projected to contract in 2020 before a solid recovery in 2021. The diamond mining sector is forecasted to decline by 14.9% in real terms during 2020 and to recover to a growth of 4.5% in 2021.

The secondary sector, which comprises manufacturing and construction, will also contract in 2020.

The construction sector is also expected to go through a difficult period. The secondary industries are projected to contract by 5.2% during 2020, largely due to expected declines in the construction and manufacturing sectors.

“Growth in the secondary industries is then expected to recover to 2% in 2021. The manufacturing sector is projected to contract during 2020 before a slight recovery in 2021. The manufacturing sector is projected to contract by 4.9% in 2020 before growing by 2.3% in 2021.

The contraction in the construction sector is expected to deepen during 2020 as projects are likely to be delayed. The construction sector is expected to contract by 16.3% and 1.5% in 2020 and 2021.

The tertiary sector is also not expected to escape unscathed.

Tertiary industries are expected shrink during 2020 before making a moderate recovery in 2021. The tertiary industries are projected to contract by 6.1% in 2020 and grow by 1.4% in 2021. The projected contraction of 6.1% in 2020 is a downward revision from a mild contraction of 0.4% published in the February 2020 economic outlook update.

The wholesale and retail trade sector is expected to contract in 2020 and then to recover marginally in 2021. The wholesale and retail trade sector is projected to contract by 6.3% in 2020 and to grow by 1.5% in 2021.

Similar News

 

World's top companies urge green action

19 hours ago | Economics

Simon Jessop - Some of the world's biggest companies yesterday backed growing calls for governments to do more to reverse the accelerating destruction of the...

Majority women still in running to head WTO

19 hours ago | Economics

Geneva - Three women - two Africans and a South Korean - were among the five candidates still in the running to take the helm...

WeChat, TikTok ban is test for open internet

19 hours ago | Economics

Rob Lever - The US ban on Chinese-owned apps WeChat and TikTok sets up a pivotal legal challenge on digital free expression with important ramifications...

!Gawaxab on his first 100 days

4 days ago - 18 September 2020 | Economics

PHILLEPUS UUSIKU - Even before the coronavirus crisis, Namibia’s economy was contracting, unemployment was high and fiscal space severely constrained if not exhausted, creating an...

Government support business sector

5 days ago - 17 September 2020 | Economics

Government has paid out N$ 3.8 billion for outstanding invoices and value-added tax in support of the business sector including small and medium enterprises (SMEs)...

Whk informal settlements don’t have capacity

5 days ago - 17 September 2020 | Economics

Windhoek mayor Fransina Kahungu said unplanned informal settlements in Windhoek will be declared reception areas that will be decongested in order to reduce the spread...

Namibia's investment risk increases - report

5 days ago - 17 September 2020 | Economics

ELLANIE SMITWINDHOEKThe risk of investing in Namibia has been increasing, while rewards have been declining, according to a new investment report. The coronavirus pandemic...

Policy void fuels poverty

6 days ago - 16 September 2020 | Economics

JM Kretschmer - The Namibian government has of late come under increased pressure from all sectors of society, and in a key turn of events...

August inflation a bitter fruit

6 days ago - 16 September 2020 | Economics

Although annual overall inflation of 2.4% last month was below the 3.7% of a year ago, overall food inflation is starting to heat up. According...

Hobbling SA govt relief package

6 days ago - 16 September 2020 | Economics

Emma Rumney and Alexander Winning - South Africa's National Treasury plans no further easing of its coronavirus loan scheme criteria to stimulate uptake, it told...

Latest News

Copper struggles on virus resurgence

19 hours ago | Business

Copper prices eased back yesterday from the highest levels in more than two years as Covid-19 cases surged, threatening to curb economic activity and metals...

'Broke' Edgars won't dent Oryx...

19 hours ago | Business

Oryx Properties has shielded itself against possible vacant space in Maerua Mall resulting from Edcon's bankruptcy protection by reaching a lease agreement with South African-based...

Teenager raped in quarantine

19 hours ago | Crime

JEMIMA BEUKES AND ADOLF KAURESWAKOPMUND/WINDHOEKSwakopmund State Hospital driver, 26-year-old Glenn Clifford Leister, has been denied bail by the local magistrate's court after appearing in connection...

Covid-19: Partying Namibians throw caution...

19 hours ago | Health

JEMIMA BEUKES WINDHOEKNamibians have thrown caution to the wind and are failing to adhere to regulations without being policed, after the Covid-19 state of emergency...

Swapo's Wakudumo and Shinduvi face...

19 hours ago | Politics

Kenya KamboweRUNDUThe Swapo Kavango East regional executive committee (REC) passed a motion of no confidence in the region's coordinator Ottilie Shinduvi and the regional mobiliser...

Kauhaie wins the crown

19 hours ago | Youth

Irene-Mari van der Walt Swakopmund • [email protected] the cancellation of the Mr Teen Swakopmund 2020, the Miss Teen Swakopmund 2020 pageant went ahead at...

Declining repo rate supports domestic...

19 hours ago | Business

PHILLEPUS UUSIKUThe Bank of Namibia (BoN) and the South African Reserve Bank (SARB) have cut the repo rate several times since both countries announced states...

Government availing shacks humiliating

19 hours ago | Opinion

In January 2019, President Hage Geingob described shacks (corrugated iron homes) as a 'humanitarian crisis'. “We have a crisis where human beings are staying in...

World Tourism Day

19 hours ago | People

Michael ShagandjwaThe country should establish more unique heritage attractions that reflect our country’s background. Create an interesting image with reservations that are worth viewing and...

Load More