Guest Contributor | Feb 27, 2024 | 0
Shiimi revises projected economic growth down to 1.9%
Finance Minister, Iipumbu Shiimi projected the domestic economy to grow by 1.9% this year, a downward revision from the 2.1% projected in March this year.
Shiimi said the revision reflects low base effects and slightly lower production prospects, compounded by the rampant third wave of the COVID-19 pandemic and the subsequent restrictive measures introduced to contain the spread of the virus.
Shiimi said the domestic economy is estimated to return to a positive growth trajectory, however that growth is still not strong enough to regain the revenue prospects lost during the recession and pandemic periods.
“From the sectors of industry point of view, growth will be anchored by output from primary industries and tertiary industries on the back of a strong recovery in mining, supported by minor growth in agriculture as well as strong activity in wholesale and retail, transport, and financial services. Secondary industries are projected to contract, largely due to expected declines in electricity and water production as well as the construction sector,” Shiimi said.
Shiimi said this when delivering the 2021/22 mid-year budget review in the National Assembly on Wednesday, 03 November.
The budget deficit stood at 8% of GDP, compared to the budgeted 12.5% due to a combination of upward revisions in nominal GDP, superior revenue performance and underspending.
Actual revenue outturn amounted to N$57.8 billion equivalent to 32.5% of GDP, significantly better than the budget revenue estimate of N$51.4 billion.
Namibia’s nominal GDP as per the final National Accounts for 2020 was registered at N$178.1 billion. Further, the country’s total debt stood at N$110.6 billion, representing 62.1% of GDP.