Namibian economy expected to plunge by historic margin

Windhoek, Namibia: Bank of Namibia building – the Namibian central bank, issues the Namibian dollar – photo by M.Torres. Getty Images

The Namibian economy is expected to record the largest contraction in recent history due to the devastating impact of the COVID-19 pandemic, the Bank of Namibia director of strategic communication Emma Haiyambo has said.

While releasing the latest economic outlook for December on Monday, the official said the domestic economy is projected to contract by 7.3 percent in 2020 and to recover by 2.6 percent and 3.2 percent in 2021 and 2022, respectively.

"The steep contraction in 2020 is driven by sharp declines in hotels and restaurants; mining; transport and storage; manufacturing; wholesale and retail trade and construction," she said.

Haiyambo said the improved growth projected in 2021 is expected in the primary, secondary, and tertiary industries particularly uranium mining, beverages, wholesale and retail trade.

According to the central bank, the latest overall growth estimate of -7.3 percent for 2020 represents a slight improvement from -7.8 percent published in the August 2020 economic outlook.

"Year-to-date information about economic activity for 2020 so far suggests that estimated contractions in agriculture, forestry and fishing, and in mining and quarrying are likely to be less severe than initially anticipated.

"Risks to domestic growth are currently dominated by uncertainty regarding the duration of the COVID-19 pandemic," she said.

Source(s): Xinhua News Agency