Namibia’s financial system remained sound and resilient in 2022, according to a joint financial stability report released Thursday by the Bank of Namibia and the Namibia Financial Institutions Supervisory Authority.
Domestic economic growth improved in 2022, driven by the primary and secondary industries, but it is projected to slow down in 2023 due to weaker global demand and reduced spending power.
The report also highlights potential risks to the domestic financial system. Risks to domestic growth include a global tightening of monetary policy, high costs of key import items, water supply interruptions, potential spillovers to Namibia of electricity cuts in South Africa, and uncertainty about the effects of climate change.
Despite the challenges, the report says the banking sector remained liquid, profitable, and well-capitalized. Enditem