Good growth expected in 2017 The Namibian economy is expected to show satisfactory growth in 2017 on the back of improved diamond mining, signs of recovery in the agricultural sector, and an anticipated improvement in the uranium, transport and telecommunication sectors, according to the Bank of Namibia.Releasing its outlook for 2017, the central bank said in a statement: “Namibia''s real GDP growth is projected to slow down to 2.5 percent in 2016, before accelerating to 4.0 percent in 2017. The projected growth rates represent a slowdown from the national accounts estimate of 5.3 percent for 2015. This contraction is mainly attributed to a projected decline in construction, diamond mining subsector, electricity and water sector and the planned reduction in government expenditure.”
On the upside however, the central bank said 2017 held a promise of improvement.
“Meanwhile, good growth prospects are expected from metal ores mining (copper and gold), uranium mining, as well as, wholesale and retail sector; and thus these sectors are expected to sustain growth at 2.5 percent in 2016. Over the medium term, growth will mainly be supported by anticipated recovery in both agriculture and diamond mining as well as improved growth in uranium mining, manufacturing, and transport and communication sectors.”
The Bank of Namibia stated that there were still headwinds that could curtail growth, particularly low commodity prices and slowed growth in major economies.
“Weak global demand, emanating from slower growth in advanced economies and major emerging market economies, coupled with slow recovery of international commodity prices, may slow production at some of the local mines, especially uranium mines.”
STAFF REPORTER