Domestic economy to grow by 2.9% in 2017 – BoN

Namibia’s domestic economic growth is expected to improve to 2.9% in 2017, according to the Bank of Namibia (BoN).

The central bank this week released the February 2017 Economic Outlook Update with the domestic economic growth estimated to have slowed to 1.0 percent in 2016, and now expected to improve.

In a statement BoN said, the estimated growth rate is much lower compared to the November 2016 update, which was projected at 2.5 percent and 4 percent for 2016 and 2017, respectively.

“The lower growth expectation for 2016, when compared to the last update is due to deeper contractions in diamond mining and construction than earlier expected,” the statement read.

Meanwhile, BoN said that risks to the domestic economy remains definite since the last economic outlook update in November 2016.

“Such risks include low commodity prices and global uncertainty emanating from trade relations between the US and her trading partners,” BoN said.

“Despite the recent uptick in the uranium price, the reverse in this price could lead to deterioration in Namibia’s terms of trade and exert pressure on both the current account balance and international reserves,” the central bank added.

Furthermore, BoN said the recent outbreak of army worms in some parts of the country and in the southern African region constitute a major risk to growth in the agricultural sector.