Namibia’s central bank forecasts deeper economic contraction in 2019
The Bank of Namibia said on Tuesday it expected the domestic economy to fall into a deeper contraction of 1.7% during 2019, down from its initial estimate of 0.3% positive growth in April.
The central bank said the economy was expected to recover to positive growth of 0.8% and 1.2% in 2020 and 2021, respectively.
The projected 1.7% contraction of 1.7% for 2019 represents a further deterioration from a mild contraction of 0.1% in 2018, according to preliminary estimates by the Namibia Statistics Agency.
The bank said the expected deeper contraction during 2019 would be in line with a devastating drought now afflicting Namibia as well as anticipated contractions in major sectors such as diamond mining and wholesale and retail trade.
A likely reduced contraction in the construction sector would ease the drag on overall growth when compared to the last two years, but its impact will be offset by weaknesses in other sectors during 2019, it said.
Risks to the domestic economic outlook include the persistently low uranium price and unpredictable rainfall.
Low uranium prices continue to adversely impact the prospects for uranium mining in Namibia, while erratic rainfall may continue to crimp agricultural output beyond 2019.
“Furthermore, the China-US trade tensions may negatively affect the demand for Namibian minerals and products,” the central bank said in a statement.
The bank recently cut its benchmark interest rate for the first time in two years as part of efforts to boost the economy, which has already suffered two years of negative growth, a first since independence from South Africa in 1990.
Comments
Research Reports
Projects
Latest News
Showroom
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
