The Bank of Namibia released the Economic Outlook Update for December 2021 with the domestic economy expected to grow by 1.5% in 2021, and 3.3% in 2022, with risks to domestic growth remaining dominated by the impact of the COVID-19 pandemic.
The latest central bank projection of 1.5% growth for 2021 represents a marginal improvement when compared to the 1.4% forecasted in the August 2021 Economic Outlook.
“The Namibian economy is expected to recover moderately during 2021 and to improve further in 2022, supported by better growth for the mining industry and most tertiary industries. The projected improvements are mainly due to base effects and better growth prospects for the mining industry and most industries in the tertiary sector,” the central bank said.
“Risks to domestic growth remain dominated by the impact of the Covid-19 pandemic, but also include persistently low international prices for some of Namibia’s export commodities and climatic swings. Risks to domestic growth are dominated by travel restrictions that are still in place for many countries exacerbated by new waves of coronavirus infections and the pace of vaccinations in Namibia.”
The latest BoN projection is higher than the International Monetary Fund’s 1.3% growth rate announced in October and lower than Finance minister Iipumbu Shiimi’s 1.9% forecast announced in his Budget Review Statement last month.
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