Economic growth expected to improve in 2022
The domestic growth is projected to improve during 2022 and 2023, supported by better growth prospects for the mining industry and most of the tertiary industries, the country’s central bank said in an economic outlook on Monday.
The economic growth is estimated at 0.9% for 2021 and is expected to improve to 3.4% in 2022 and to 3.7% in 2023, the Bank of Namibia said in a statement.
“The 2021 growth estimate was revised down from 1.5% published in the December 2021 Economic Outlook update, largely reflecting lower performance for sectors like non-metallic minerals products, construction, wholesale and retail trade, and financial services,” the bank said.
According to the Bank of Namibia, the projected improvement in 2022 and 2023 will be supported by the mining industry and most of the industries in the tertiary sector.
Meanwhile, the central bank said risks to domestic growth remain dominated by the impact of the Covid-19 pandemic but also include swings in rainfall patterns as well as high prices for energy products like fuel and gas and supply disruptions around the world.
“Risks to domestic growth include new waves of coronavirus infections, vaccine hesitancy, the slow pace of vaccinations in Namibia and supply chain disruptions,” the bank stated.