The domestic economy is projected to improve during 2022 and 2023, supported by better growth prospects for the mining industry and most of the tertiary industries.
This is according to the Bank of Namibia (BoN) in its economic outlook update for February 2022 issued on Monday.
According to BoN, Namibia’s economic growth is estimated at 0.9 per cent for 2021 and expected to improve to 3.4 per cent in 2022 and 3.7 per cent in 2023.
“The 2021 growth estimate was revised down from 1.5 per cent published in the December 2021 economic outlook update, largely reflecting lower performance for sectors like non-metallic mineral products, construction, wholesale and retail trade, and financial services,” the bank noted.
Additionally, the projected improvement in 2022 and 2023 will be supported by the mining industry and most of the industries in the tertiary sector.
“Risks to domestic growth remain dominated by the impact of the COVID-19 pandemic, but also include swings in rainfall pattern as well as high prices for energy products such as fuel and gas and supply disruptions around the world.”
These risks include new waves of COVID-19 infections, vaccine hesitancy, the slow pace of vaccinations in Namibia and supply chain disruptions.
Other notable risks to domestic growth outlook include high prices for energy products such as fuel and gas, as well as supply disruptions around the world and breaks in the rainfall pattern that might have a negative impact on agriculture.
Meanwhile, growth in Sub-Saharan Africa is projected to moderate downwards in 2022 and improve in 2023 at a projected 3.7 per cent and 4.0 per cent respectively, from 4.0 per cent in 2021.
“The 2022 growth projection is 0.1 percentage point lower relative to the October 2021 World Economic Outlook. Globally, economic growth is projected to moderate during 2022 and 2023 following an estimated stronger growth in 2021. The expected moderation in global growth during 2022 and 2023 incorporates anticipated effects of travel restrictions, border closures, and health impacts from the spread of the Omicron variant,” BoN said.
Source: The Namibia Press Agency
