The Governor of the Bank of Namibia, Johannes !Gawaxab, says he is confident about Namibia’s ability to rebound from the economic scarring accentuated by the COVID-19 pandemic.
“Building on its strong points, Namibia can emerge from the constraints posed by Covid-19, and addressing its challenges with urgency and resolve, a return to vibrant growth is in sight. There are several promising projects and initiatives to reinvigorate growth, also here in the South, on the horizon. Continuous reforms and better macroeconomic management coupled with investments and adapting to a changing landscape are inevitable and crucial to secure a recovery going forward,” he told a public lecture hosted at the University of Namibia on Thursday.
He said while the setbacks are evident at both individual and national levels, “the pandemic has provided an opportunity to reset and rebuild the economy on sound fundamentals. For this reason, the central bank, has continued to support the economy through interventions implemented since April 2020 which have softenedthe blow on the economy and provided much needed relief to struggling borrowers. These relief measures coupled with a low interest environment and low inflation continue to support growth in the economy.”
!Gawaxab restated the central bank’s commitment to play its role in supporting growth through financial stability, well-contained inflation, and growth-supporting interest rates.
“However, monetary and fiscal policies can only do so much, and the road to recovery is presently affected by a slow uptake of vaccinations in some parts of the country, which impacts on the country’s ability to resume economic activities. Trivializing COVID-19 and vaccine hesitancy can be disastrous as the country is not out of the woods yet. Stepping up of vaccination is a crucial element of reviving the economy which needs to enjoy the support of everyone,” he said.
BoN estimates that the country’s real GDP contracted by 8.5% in 2020 largely attributed to the negative impact of COVID-19, with hotels and restaurants emerging the worst hit sector, shrinking by 31.2%.
The central bank has, however, forecasted the domestic economy to recover gradually during 2021 by 1.4% then improve to a 3,4% growth rate in 2022.
