Namibia grows at 4.4%, globe by 3.1%
Namibia’s real GDP growth is expected to slow down to 4.4% this year, the Bank of Namibia said in its latest economic outlook, issued yesterday.
The local economy is projected to maintain a moderate growth trajectory until 2017, as an expected contraction in the construction and diamond mining sectors affect overall growth.
The economy is expected to pick up by next year, the central bank said, suggesting a growth rate of 5.4% for 2017.
The BoN’s view on Namibia echoes its stance for the global economy, which it said was expected to remain stagnant in 2016 before improving moderately in 2017.
“Weak global demand, emanated from slower growth in advanced economies and major emerging-market economies, coupled with slow recovery of international commodity prices, may slow production at some of the local mines, especially uranium mines,” BoN’s director for strategic communication and financial sector development, Ndangi Katoma, said in the statement issued yesterday.
He said growth would be supported in 2017 by expansion in mining output and sustained growth in wholesale and retail trade.
“At the regional level, drought poses an immediate threat to production in primary industries and food inflation. Namibia is faced with water shortages, which may further restrain growth in sectors such as construction, beverages, meat processing and agriculture,” he said.
The International Monetary Fund (IMF) this month said it expected global growth to amount to 3.1% and 3.4% in 2016 and 2017, respectively, in line with the 3.1% growth it said was experienced in 2015.
“Growth in the Sub-Saharan African region is expected to slow down to 1.6% in 2016, before picking up to 3.3% in 2017,” Katoma said.
The slower growth expected in the global economy, he said, was attributed to low commodity prices, low household spending and weak demand from China and other key emerging market economies.
“Risks to the global economic outlook remain and include increasing uncertainty associated with the recent vote by the United Kingdom to leave the European Union, low commodity prices, exchange-rate volatility and the continuation of monetary policy normalisation in the US,” he said.
DENVER ISAACS
The local economy is projected to maintain a moderate growth trajectory until 2017, as an expected contraction in the construction and diamond mining sectors affect overall growth.
The economy is expected to pick up by next year, the central bank said, suggesting a growth rate of 5.4% for 2017.
The BoN’s view on Namibia echoes its stance for the global economy, which it said was expected to remain stagnant in 2016 before improving moderately in 2017.
“Weak global demand, emanated from slower growth in advanced economies and major emerging-market economies, coupled with slow recovery of international commodity prices, may slow production at some of the local mines, especially uranium mines,” BoN’s director for strategic communication and financial sector development, Ndangi Katoma, said in the statement issued yesterday.
He said growth would be supported in 2017 by expansion in mining output and sustained growth in wholesale and retail trade.
“At the regional level, drought poses an immediate threat to production in primary industries and food inflation. Namibia is faced with water shortages, which may further restrain growth in sectors such as construction, beverages, meat processing and agriculture,” he said.
The International Monetary Fund (IMF) this month said it expected global growth to amount to 3.1% and 3.4% in 2016 and 2017, respectively, in line with the 3.1% growth it said was experienced in 2015.
“Growth in the Sub-Saharan African region is expected to slow down to 1.6% in 2016, before picking up to 3.3% in 2017,” Katoma said.
The slower growth expected in the global economy, he said, was attributed to low commodity prices, low household spending and weak demand from China and other key emerging market economies.
“Risks to the global economic outlook remain and include increasing uncertainty associated with the recent vote by the United Kingdom to leave the European Union, low commodity prices, exchange-rate volatility and the continuation of monetary policy normalisation in the US,” he said.
DENVER ISAACS
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