Central Bank foresee robust economic growth for Namibia
Windhoek – The Namibian economy is projected to grow by 5 and 5.5 percent between 2015-2017, supported by growth in the secondary industry and recovery in the primary industry, according to the latest economic indicators released by the Bank of Namibia (BON).
This is an improvement from the 4.5 percent GDP growth recorded during
2014; however adverse weather conditions could cut agricultural growth if they do not improve during 2015/2016 season.
According to Ndangi Katoma, BON’s Director: Strategic Communication and Financial Sector Development, growth will be driven by construction in the private and public sectors, increased mining output from new mines and projected increase in manufacturing activities.
He says that the downside risk to domestic growth include slow recovery in the country’s trading partner economies, coupled with adverse local weather conditions, but the projected recovery in uranium mining is dependent on the assumption that international
prices for uranium would continue to recover.
“This will ensure continuation of uranium production and export and entice mines that are on hold to resume with production,” added Katoma.
Furthermore, electricity supply shortages that are being experienced in South Africa could worsen and spill over to Namibia and restrain growth here, while a decline in oil prices in the Angolan economy could possibly have a dent on the Namibian economy’s growth.
The Namibian economy saw a decline in the first quarter of this year, with a growth of 3.4 percent, according to figures released by the
National Statistics Agency (NSA), which was mainly attributed to wholesale and retail trade which recorded slow growth of 2.4 percent, while hotels and restaurants and the fishing sector, only grew by 7.1 percent and 2.5 percent, respectively.
According to NSA, supermarkets saw a decline of 2.8 percent in revenue in 2015, compared to an increase of 35.6 percent recorded last year, which led to the weakening growth in the wholesale and retail trade.
Hotels and restaurants also suffered similar fate, where the number of bed nights sold and room nights sold only increased by 1.1 percent and 0.5 percent, respectively during this year, compared to an increase of 11.3 percent of bed nights sold and 13.3 percent growth in 2014.