IMF SAYS NAMIBIA ECONOMIC GROWTH DROPPED TO 2.8%

The International Monetary Fund (IMF) forecasts economic growth of 2.8% for Namibia in its latest World Economic Outlook, released today.

This is unchanged from the IMF’s estimate in October 2022, but a drop compared to the 3.7% the Fund projected last April.

The IMF’s latest projection is lower than finance minister Iipumbu Shiimi’s 3.2% which he mentioned in his budget speech at the end of February, as well as the Bank of Namibia’s (BoN) 3.0% in its Economic Outlook Update released last month.

The IMF expects the domestic economy to further slow to 2.6% in 2024.

“Tentative signs in early 2023 that the world economy could achieve a soft landing—with inflation coming down and growth steady—have receded amid stubbornly high inflation and recent financial sector turmoil,” the IMF said.

The Fund continued: “Although inflation has declined as central banks have raised interest rates and food and energy prices have come down, underlying price pressures are proving sticky, with labor markets tight in several economies.

“Side effects from the fast rise in policy rates are becoming apparent, as banking sector vulnerabilities have come into focus and fears of contagion have risen across the broader financial sector, including nonbank financial institutions.

“Policymakers have taken forceful actions to stabilize the banking system,” the IMF added.

SOURCE: NamibiaSun