Business

IMF sees Namibia growing in 2020 after three-year contraction

Last updated on September 11th, 2021 at 03:24 pm

Namibia’s economy will return to growth in 2020 after contracting for three straight years, but a failure to implement structural reforms could keep the southwest African nation stuck in a low-growth trap, according to the International Monetary Fund.
The economy of the world’s largest marine-diamond producer has been hit by a regional drought and a slump in South Africa, its bigger neighbour that it tracks closely and to whose currency the Namibian dollar is pegged. Gross domestic product will contract by 0.2% this year, before expanding at 1.6% in 2020, the Washington-based lender said in an emailed statement following an article 4 consultation in the country.

However, “absent structural reforms, growth is expected to converge to a long-term level of about 3%, which is too low to deliver meaningful improvements in per capita income and reduce unemployment,” the IMF said.
These steps include lowering regulatory compliance costs for businesses, reducing electricity and transportation costs by reforming the state-owned companies that operate in these sectors, and containing public-sector salary dynamics by avoiding regulations that hamper domestic competition.
The IMF’s forecast for this year is more upbeat than that of the Bank of Namibia, which has said it sees a 1.7% contraction this year.

Albert Echetah

Recent Posts

‘Pregnant’ for 15 Months: Inside Nigeria’sDisturbing Fertility Scam Network

A recently uncovered scam from Nigeria’s Anambra state has some women falling preyto “cryptic pregnancy” con. BBC investigation has revealed…

November 25, 2024

President William Ruto Launches University of Nairobi’s Silicon Savannah Innovation Park

The University of Nairobi's Silicon Savannah Innovation Park was launched at State House inNairobi by President William Ruto. The aim…

November 25, 2024

Newcastle vs West Ham: KeyPredictions for Today’s Clash

The Newcastle vs West Ham match is taking place today in Newcastle, England at St James'Park stadium. The match will…

November 25, 2024

Tanzania Opposition Leader Freeman Mbowe Released On Bail

The leader of Tanzania's main opposition party, Chadema, Freeman Mbowe, has been released on bail after being arrested on Friday,…

November 24, 2024

Four UAE Convoys Deliver Essential Aid to Gaza’s Struggling Communities

This week, four aid convoys carrying various forms of humanitarian supplies from the United Arab Emirates crossed the Rafah Border…

November 23, 2024

Rising Tide of Climate Change Protest: Arrest took place Amid Coal Export Demonstrations

Hundreds of demonstrators took to Newcastle's harbour in canoes and kayaks for a climate protest which resulted in several arrests.…

November 23, 2024

This website uses cookies.