Namibia’s economy is forecast to grow by three percent this year on the back of recoveries of the mining, manufacturing and tourism sectors, the International Monetary Fund (IMF) said on Wednesday.
In a statement, head of the IMF mission that assessed the performance of the southwest African country Giorgia Albertin said the Namibian economy has been on a recovery path after a sharp gross domestic product (GDP) contraction triggered by the COVID-19 pandemic.
“Real GDP growth is expected at three percent in 2022 and 3.2 percent in 2023, supported by robust diamond, gold and uranium production, and rebounding tourism,” Albertin said.
She revealed that Namibia’s real GDP growth reached 2.7 percent in 2021 as mining activity rebounded and tertiary sector activities began to recover.
“The recovery strengthened in the first half of 2022 on the back of sustained mining growth and stronger manufacturing activity.”
The official, however, warned of rising inflationary pressures on the back of higher international oil and food prices and supply chain bottlenecks triggered by the Russia-Ukraine war.
Namibia’s annualised inflation rose to 5.6 percent in August, reflecting rising food and transport prices.
“Average inflation would rise to 6.4 percent in 2022 and start to moderate in 2023,” she said.
The IMF team called on President Hage Geingob’s government to work towards preserving macroeconomic stability, advancing structural reforms and protecting vulnerable groups in order “to foster private sector-led and inclusive growth and reduce unemployment and inequality.”
This should involve preserving debt sustainability, containing the public sector wage bill, advancing the reform of state-owned enterprises and strengthening tax administration, it said.
JN/APA