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Namibia’s GDP will contract in 2018, growth will gradually recover: IMF

Namibia's economy is forecast to contract 0.2 per cent this year, down from a previous forecast of 1 per cent growth, due to a weak performance in the manufacturing and construction sectors, the finance ministry has said.


Devdiscourse News Desk Last Updated at 10-11-2018 15:55:30 IST Namibia
Namibia’s GDP will contract in 2018, growth will gradually recover: IMF
  • Namibia's GDP has averaged 4.29 per cent since independence in 1990. (Image Credit: Reuters)

The International Monetary Fund (IMF) projects that Namibia's GDP will contract in 2018, pushing out its forecast for growth to next year when it sees support from strong mining production and a rebound in construction activities.

Namibia's economy is forecast to contract 0.2 per cent this year, down from a previous forecast of 1 per cent growth, due to a weak performance in the manufacturing and construction sectors, the finance ministry has said.

The diamond and uranium producer's economy contracted by 0.9 per cent in 2017.

Geremia Palomba, who led the IMF team, said growth would gradually recover.

"After years of robust growth, the economy has entered a recession phase...IMF staff anticipates that the economy will recover gradually," Palomba said in a statement

He said growth would strengthen at a long-term rate of about 3 per cent but gave no specific time frame. He added that growth would be below the average recorded in recent years, held back by low productivity growth and stagnant competitiveness.

Namibia's GDP has averaged 4.29 per cent since independence in 1990.

Palomba said the downside risks to the IMF's outlook included lower-than-expected revenue from the Southern Africa Customs Union (SACU), slower growth recovery, and fiscal slippage.

(With inputs from agencies.)


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