Much retail therapy anticipated for the new year

Windhoekers are roaming the shopping malls as if there is no tomorrow. The Economist trapped these keen shoppers as they were taking a lunch break earlier this week. A general mood of optimism was expressed by those resident hunting the shopping malls for new year specials. A noted economist expects 2014 to be better than 2013. (Photographed by Ogone Tlhage)Emerging from a devastating drought in 2013 just how well will the economy perform in the new year and what lies ahead as the country surges forward with the possibility of a looming energy crisis within the region, a weakening rand, a recovering Eurozone, and the stark reality tapering offers on the side of the Federal Reserve. This week, the Economist spoke to several respondents to test expectations for 2014.
Commenting on prospects for the economy, independent economist Klaus Schade said he expects the economy to perform better than in 2013 owing to developments in the global economy which would lead to improved performance in the local mining industry. Commodity prices are expected to recover against a weak Rand which is expected to hover in the range of N$10.00 to N$10.50 to the US Dollar. He added that inflationary expectations are stable at this point, a situation likely to keep interest rates unchanged.