Namibia is a small open economy with a small population which makes the country vulnerable to external factors

Namibia is a small open economy with a small population which makes the country vulnerable to external factors that are currently causing headwinds, Minister of Finance, Calle Schlettwein has said.

Schlettwein made the remarks while addressing a star rally of the Swapo Party here yesterday when he referred to events that happen elsewhere in the region and in the world, over which Namibia as a country has little or no influence.

He said these external factors include low commodity prices, trade wars between the major powers of the world causing reduced trade, economic downturns in neighbouring countries, climate change and resultant droughts.

These negative factors have had significant negative impacts on the country's economy. Namibia's export values shrunk, its trade balance became negative, while earnings from international trade reduced and the currency weakened, he explained.

Schlettwein further said that in spite of the negative external factors, Namibia maintained macro-economic stability and established a number of social safety nets.

Source: Nambia Press Agency