Industry

Primary industries expected to lead economic recovery: BoN

Summary

Primary industries are expected to lead Namibia’s economic recovery, with robust growth rates projected for 2021 and 2022, according to the Bank of Namibia’s economic outlook report for February 2021.The report, released on Friday, indicated that prima…

Primary industries are expected to lead Namibia’s economic recovery, with robust growth rates projected for 2021 and 2022, according to the Bank of Namibia’s economic outlook report for February 2021.

The report, released on Friday, indicated that primary industries are projected to expand by 5.0 per cent and 8.6 per cent in 2021 and 2022 respectively, from an estimated contraction of 7.5 per cent in 2020.

“This will be led by improved growth rates for the agriculture, forestry and fishing, diamond mining and metal ores sectors. In this update, significant revisions were done on the mining and quarrying sector, which is now expected to grow by 5.4 per cent in 2021 from earlier projection of 2.9 per cent in the same year,” the report said.

It noted that the agriculture, forestry and fishing sector is expected to return to positive growth in 2021, from a mild contraction in 2020.

The report further said secondary industries are projected to expand by 2.9 per cent and 2.7 per cent in 2021 and 2022 respectively, an improvement from a contraction of 11.5 per cent during 2020. Improvements in growth projected for 2021 and 2022 are expected to come from recoveries in all secondary industries such as manufacturing, electricity and water and construction.

It also said tertiary industries are expected to register mild growth rates during 2021 and 2022, recovering from a contraction in 2020.

The tertiary industries are projected to grow by 2.1 per cent and 2.0 per cent in 2021 and 2022 respectively, an improvement from a 5.1 per cent contraction in 2020. Tertiary industries include sectors that were most affected by the outbreak of the COVID-19 pandemic during 2020. For the year 2020, tertiary industries were estimated to contract by 6.0 per cent in the December 2020 update, which has now been revised slightly to a contraction of 5.3 per cent.

Contractions for subsectors such as hotels and restaurants, health and real estate activities were reduced in the latest update

“Similarly, the performance of sectors such as transport and storage, professional, scientific and technical services, administrative and support services were improved due to the bigger weight of tertiary industries in Namibia’s National Accounts, even mild growth rates of around 2.0 per cent to 2.1 per cent contribute significantly to the overall growth,” the report added.

Source: Namibia Press Agency