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Economy estimated to contract by 7.8% in 2020 – Bank of Namibia

Economy estimated to contract by 7.8% in 2020 – Bank of Namibia

The domestic economy is expected to fall into a deeper contraction during 2020, followed by a moderate recovery in 2021, according to the central bank.

The domestic economy is estimated to contract by 7.8% in 2020 compared to a lesser contraction of 1.1% in 2019, according to the Bank of Namibia’s economic outlook for August, released this week.

“The estimated deeper contraction during 2020 is mainly attributed to the outbreak of the COVID-19 pandemic, which has led to travel restrictions across the world and lockdowns in many countries, including Namibia,” the bank stated.

According to the central bank, the most affected sectors include hotels and restaurants; mining; transport and storage; manufacturing; wholesale and retail trade; financial and insurance services; and construction.

The economy is however projected to recover to growth rates of 2.1% and 2.7% in 2021 and 2022, respectively, the central bank added.


 

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