Confidence in Namibian Economy Improves

NAMIBIA’S graduate professionals are optimistic about the local economy, according to the results of the latest quarterly PPS Namibia Graduate Professional Confidence Index (PCI), which tracks the confidence levels of approximately 200 Namibian graduate professionals.

The respondents revealed a confidence level of 77% when asked about their confidence in the economic outlook for the country over the next 12 months.

“This result is incredibly positive compared to the South African version of the PCI which recorded a confidence level of 54% for the same quarter,” says Adri Vermeulen, Chief Executive of PPS Namibia.

The index also recorded a two percentage point increase to 58% from the previous quarter when respondents were asked whether the world has seen the worst of international economic turmoil.

Vermeulen says it is encouraging to note that despite current global economic uncertainty Namibian professionals have an increased confidence in the local economy. “This confidence is reflective of recent positive reports about the Namibian economy from Fitch Ratings, which revealed growth forecasts of 4,8% and 5,0% for 2014 and 2015 respectively.”

While Namibian professionals have confidence in the local economy, their confidence in the opportunities available to practitioners working within their specific profession to reach their maximum potential declined two percentage points, quarter on quarter, to 75%. When asked whether they are confident that sufficient opportunities are available for new professional entrants to the Namibian labour market, the respondents’ confidence level remained unchanged from the previous quarter at 70%.

Vermeulen says the results are still relatively high for these areas of questioning, so there is no need for concern at this stage. “However, it does point to the need for government to ensure that there are opportunities available to young graduate professionals entering the market in order to attract and retain these valuable skills.”

The survey also revealed a confidence level of 86% when respondents were asked about their confidence of remaining in the country for the foreseeable future.

Other results from the survey revealed that confidence in the future of the health care system in Namibia over the next five years increased four percentage points to 61% compared with the previous quarter.

Confidence about the standard of education in Namibia over the next five years decreased three percentage points quarter-on-quarter to 58%, while 73% of respondents also noted that they were concerned about the rising cost of education in the country, down three percentage points from the previous quarter.

“It is imperative that we pay attention to the results of the Namibian PCI because it helps us to highlight areas of concern for skilled professionals in the country. This data can assist us to identify issues that need to be addressed in order to attract and retain these valuable professionals who are the driving force behind economic growth,” concludes Vermeulen.

Source : The Namibian