Namibia’s economic growth slowing down

Wpid Money Growth
Economic growth

Namibia’s real gross domestic product (GDP) growth decelerated, although overall economic activity remained robust year-to-date, a central bank executive said Wednesday.

Speaking at a monetary policy announcement, Johannes Gawaxab, the governor of the Bank of Namibia, the country’s central bank, said the recently released quarterly national accounts data for the second quarter of the year revealed a growth rate of 3.7 percent, down from the 5.3 percent in the first quarter of 2023 and a significant drop from the 8.5 percent in a similar period of 2022.

“The slowdown in economic growth was mainly due to contractions in sectors such as agriculture and forestry, construction, financial services as well as public administration and defense,” he said, adding that year-to-date, the domestic economy continued to improve, primarily driven by the mining, electricity generation, tourism, and wholesale and retail trade sectors.

Gawaxab said growth is projected to decline to 3.3 percent in 2023 from 7.6 percent in 2022, on account of slower growth in the primary industry, following the significantly high base effects growth experienced by this industry in the previous year.

The central bank decided to keep the repo rate unchanged at 7.75 percent, Gawaxab said, adding that the decision was taken following a comprehensive review of domestic, regional, and global economic developments.

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