Water and electricity sectors to remain stable -Central Bank
Growth in the electricity and water sector is estimated to have moderated in 2017 and is projected to remain stable over the remainder of the year, the Bank of Namibia said in the December 2017 Economic Outlook report.
Growth for the electricity and water sector is estimated to slow to 1.4% in 2017, from 6.8% in the previous year, with the slowdown is expected to come from the electricity sub-sector, where local electricity generation is expected to decline and imports to increase during 2017.
The central bank added that the water sector is expected to perform better during the last month of 2017 given higher dam levels that help in reducing water treatment costs.
Going forward, growth in the electricity and water sector is expected to pick-up as the overall demand for energy and water increases in response to domestic economy recovery in 2018 and 2019.
Meanwhile, the bank added that the construction is estimated to contract in 2017, but at a slightly slower rate compared to the previous year and is projected to continue contracting in the medium term.
The construction sector is estimated to contract by 26.2% in 2017 and is expected to continue recording negative growth during 2018 and 2019. The 26.2% contraction is marginally better than the 26.5% contraction registered in 2016, but represents a downward revision from 18.6% projected in the July 2017 Economic Outlook.
The central bank noted that the growth in the sector is expected to remain depressed following the completion of major projects in the mining sector and ongoing fiscal consolidation by Government.
Caption: The Ruacana Hydroelectric plant, the largest electricity-generating facility in Namibia