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Economy easing out of the contraction phase – Schlettwein

Economy easing out of the contraction phase – Schlettwein

The economy is gradually moving out of contraction, according to the Minister of Finance, Calle Schlettwein.

The domestic economy and outcomes of recent data published by Namibia Statistics Agency provides positive indications said Schlettwein on Monday during a media brief on the country’s economic state.

“The release of the Final National Accounts for 2017 in the coming month will establish the baseline extent of contraction in the economy over the past year, year-to-date preliminary data indicate that the domestic economy is easing out of the contractionary phase,” he added.

Schlettwein said that overall pace of growth has improved to a mild contraction of 0.1 percent in the first quarter of this year, markedly better than the estimated decline of 1.1 percent for 2017 and 0.4 percent during the last quarter of 2017.

“Sectors which were at the epicenter of contraction over past two years are emerging out of negative growth territory and the construction sector has rebounded to positive territory by an estimated 23 percent in the First Quarter of this year, with positive effects on jobs and incomes,” he added.

The minister said that growth in the primary industry is still holding firm, thanks to better commodity prices and the positive impact of Swakop Uranium in a rather subdued uranium mining sub-sector and better output from the agricultural sector.

“We expect the emerging overall economic recovery to be gradual at just over 1 percentage point this year but accelerating to around 3 percent by the end of the Medium Term expenditure Framework period,” he added.

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