Central bank projects economic growth to improve in 2018
The country’s economic growth rate is projected to improve steadily to 1.4 % and 2.1 % in 2018 and 2019 respectively, according to the Bank of Namibia (BoN).
The central bank in the February 2018 Economic outlook update released this week said the domestic economy is estimated to have contracted in 2017, but is expected to recover gradually in 2018 and 2019.
“Growth for 2017 is estimated at -0.6 percent in 2017, from a positive growth of 1.1 percent in 2016. The reduction in growth is ascribed to contractions in sectors such as construction, wholesale and retail trade and public sector, as well as slower growth rates for manufacturing and electricity and water,” said Kazembire Zemburuka BoN’s, Deputy Director: Corporate Communications.
Zemburuka said over the medium term, growth is projected to improve, due to the expected moderate contractions in wholesale and retail trade and construction sectors.
Meanwhile, risks to the domestic economic outlook remain, mainly in the form of persistently low uranium prices and unpredictable rainfall and possible further credit rating downgrades for the domestic economy as well as for the South African economy, he said.