Director for research and financial sector development at the Bank of Namibia, Emma Haiyambo, said the bank estimates a positive growth from 2021. This is after the domestic economy performed very poorly in 2020, registering a negative growth of 8.5%.
Overall, domestic economic activity recovered in 2021 compared to 2020. The increase in economic activity was observed in major sectors such as mining, wholesale and retail trade, communication and tourism. Risks to the domestic economic outlook in the medium-term include sudden surges in Covid-19 cases and vaccine hesitancy.
“In 2021, we estimate a recovery in the economy, the growth will be around 1%. In 2023, our forecast is pointing towards a further improvement of around 3%,” she stated last week at the announcement of the repo rate.
Furthermore, she said the bank as part of its efforts to contribute to the restoration of economic growth and sustainable economic development, is hosting a half-day seminar with the theme ‘Mapping Namibia’s Post-Covid Economic Recovery’.
The seminar is expected to bring together policymakers, business leaders, experts, professionals from local and international organisations, and academic institutions to discuss and make recommendations on a range of issues that are relevant to the country’s development agenda and aspirations.
BoN spokesperson Kazembire Zemburuka added: “The seminar aims to provide a high-level analysis of the impact of the Covid-19 pandemic on the Namibian economy, as well as to examine the unique challenges faced by various sectors and businesses, as well as to lay out strategies to address these challenges in enhancing economic recovery”.
Zemburuka noted the seminar will outline specific evidence-based solutions for reviving Namibia’s economy in the short to medium term with the goal of developing a consensus position on reviving the economy as well as long-term economic development strategies for the country.
Last week, central bank governor Johannes !Gawaxab said private sector credit extension remains an area of concern in the economy as it remains unsatisfactory.
!Gawaxab mentioned one of the banking industry challenges as non-performing loans, noting the uptake was adversely affected by the pandemic.
“It remains our job to create a conducive environment for people and business to take out the loan,” he said. Growth in PSCE declined to an average of 2.4% in 2021, lower than the 3.5% registered in 2020.
“The slowdown in PSCE was due to lower demand for credit by both businesses and households as a result of slow domestic economic activity during the review period. Since the last bank’s Monetary Policy Committee meeting, year-on-year growth in PSCE slowed to 1.2% in December 2021, from 2.9% registered in October 2021,” explained !Gawaxab.