Economic performance projected to slow down during 2023 and 2024 – Central Bank
The country’s economic growth performance is projected to slow down during 2023 and 2024, largely due to weaker global demand, the Bank of Namibia said.
According to the latest Bank of Namibia economic outlook update report, real GDP growth is estimated to have increased to 4.2% in 2022 but is then projected to slow down to 3% percent in 2023.
The estimated growth for 2022 has been revised upwards from 3.9 percent published in the December 2022 Economic Outlook update, mainly on account of higher production volumes from the diamond mining sector as well as sustained growth for most industries in secondary and tertiary sectors, the central bank 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 remain for the entire forecast period. Major central banks in the world continue to tighten monetary policies, a phenomenon that is anticipated to result in a global slowdown in 2023,” the bank’s statement said.
Furthermore, the war between Russia and Ukraine is likely to continue for longer than expected, and so are the high prices for affected commodities for which Namibia is a net importer, including fuel, wheat, and cooking oil, the central bank said.
Meanwhile, other domestic risks include water supply interruptions that continue to affect mining production at the coast, energy challenges in the region, and uncertainty about the effects of climate change going forward.
