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Economic growth estimated to increase to 3.9% in 2022 – Central bank

Economic growth estimated to increase to 3.9% in 2022 – Central bank

The country’s Real GDP growth is estimated to increase to 3.9% in 2022, from a growth of 2.7% in 2021, the central bank said in its latest Economic Outlook.

The latest growth estimate of 3.9% for 2022 represents an improvement from the 3.2% published in the August 2022 Economic Outlook.

“The revision to the 2022 growth is mainly on account of robust growth for diamond mining based mainly on higher production volumes up to date, as well as sustained growth for most industries in the secondary and tertiary sectors,” the Bank of Namibia (BoN) said.

According to the BoN, going forward growth is expected to slow down to 2.7% and 2.4% in 2023 and 2024, respectively.

Meanwhile, the BoN said risks to domestic growth are predominantly in the form of monetary policy tightening globally and high costs of key import items that are likely to persist for a long time.

“Major central banks in the world are tightening monetary policies at a fast pace, a phenomenon that is expected to result in a global slowdown in 2023 and 2024,” the BoN said.

Furthermore, the war between Russia and Ukraine is likely to continue for longer and so are the high prices for affected commodities for which Namibia is a net importer.

Other domestic risks include water supply interruptions that continue to affect mining production at the coast, potential spillover of electricity cuts in South Africa to Namibia, and uncertainty about the effects of climate change going forward.


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