The Namibian central bank (BoN) has projected a 2.7 percent expansion for Namibia’s economy this year. The country’s economy suffered a 7.3 percent slump last year due to the pandemic. The projection is made in the central bank’s Economic Outlook update for February.
It is reported that the domestic economy is expected to surge 2.7 percent this year and 3.3. percent next year. Furthermore, these are the sectors that are expected to thrive this year: diamond mining, agriculture and transport.
Furthermore, the latest 2021 outlook indicates an upward trajectory compared to December last year’s projection, because of the positive growth prospects in the primary industries. The latest outlook of 2.7 percent growth for the current year indicates a slight improvement from the previous projections of 2.6 percent. It is reported that the economic growth is likely to be broad based.
BoN, told the media, “Risks to domestic growth remain dominated by the impact of the COVID-19 pandemic on the domestic economy, mainly regarding the success of vaccinations in Namibia and around the globe.”
Global travel is mired by a fresh wave of Covid-19 pandemic in many economies with travel restrictions active. It is reported that Namibia’s growth outlook is mired by persistently low international prices for some of Namibia’s export commodities such as uranium including climatic changes. The northern part of the country is prone to floods, following a good rainfall, which is likely to occur this year.
Global banks have been hampered by the pandemic like any other sector.