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Economy expands in Q4 2022, but at a slower pace – Central Bank

Economy expands in Q4 2022, but at a slower pace – Central Bank

The domestic economy during the fourth quarter of 2022 expanded further but at a slower pace, weighed down by a contraction in the secondary industries as well as slower growth in the tertiary and primary industries, according to the central bank’s March 2023 Quarterly bulletin.

The contraction in the secondary industries was on the back of a weak performance in the manufacturing sector as well as a deep contraction in the construction sector, which has registered successive declines since the third quarter of 2021, despite the positive performance in the local electricity generation, the bulletin noted.

“Furthermore, slower activity in the tertiary industries was driven by reduced growth in the communication and wholesale and retail trade sectors, notwithstanding improved performances in the tourism and transport sectors,” the bulletin noted.

According to the report, in the primary industries, the buoyant production of diamonds during the fourth quarter of 2022, was offset by the dip in the production of gold, uranium, and zinc concentrate over the same period.

The bulletin noted that inflation also slowed marginally quarterly during the fourth quarter of 2022, but remained significantly higher than a year earlier, mainly as a result of high transport inflation.

“Inflation rose on an annual basis by 2.9 percentage points to 7% mainly due to transport, food, and housing categories. The rise was driven by an increase in the international price of oil compounded by the effects of the war between Russia and Ukraine, as well as an upward adjustment in electricity tariffs,” the bulletin said.

Quarterly, the central bank said overall inflation slowed marginally from 7.1% registered during the previous quarter, mainly on account of a downward adjustment in petrol and diesel pump prices during the fourth quarter of 2022. Meanwhile, inflation stood at 7.2% in February 2023, which presents a slight increase from 7% in January 2023 owing to food and transport inflation.

Meanwhile, on the fiscal front, the Bank of Namibia said the Central Government’s debt stock rose through the year to the end of December 2022, whereas government loan guarantees declined.

“The government debt stock stood at 65.9% of GDP at the end of December 2022, representing an increase of 0.5 percentage points yearly,” the bulletin added.

BoN Director: Strategic Communications and International Relations, Kazembire Zemburuka said the e public at large is urged to read the full Quarterly Bulletin, which can be accessed at:


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