Economy projected to grow by 3.3% in 2023
The domestic economy is projected to grow by 3.3% in 2023 and by 3% in 2024, according to the latest Bank of Namibia’s Economic Outlook for August 2023.
According to the central bank, gross domestic product (GDP) growth is projected to moderate in 2023 and 2024.
“Following the 4.6% growth realised in 2022, real GDP growth is estimated to slow to 3.3% in 2023
and 3% in 2024. The estimated growth for 2023 has been revised upwards from 3% published in the March 2023 Economic Outlook update,” the bank said.
The central bank said this is mainly based on better than earlier anticipated performance for construction, hotels and restaurants, wholesale and retail trade, public administration, and defence and education, among other sectors.
Meanwhile risks to domestic growth are predominantly in the form of ongoing monetary policy tightening globally, high costs of key import items, and water supply interruptions affecting the coastal towns, the bank said.
“Major central banks around the globe continue to tighten monetary policies and that is anticipated to result in a global slowdown in 2023 and 2024, and hence reducing external demand for Namibia’s exports. Furthermore, the war between Russia and Ukraine is likely to continue for longer, resulting in higher prices for affected commodities,” the bank said.
Other key risks relevant to domestic growth include water supply interruptions that continue to affect mining production at the coast, potential spillover of electricity cuts in South Africa to Namibia, and uncertain weather conditions, which are likely to negatively impact crop production in Southern Africa, the outlook noted.
