IMF sees Namibia growing in 2020 after three-year contraction | Fin24
  • Pioneer

    Allan Gray was an investment disruptor who brought change to young South Africans.

  • Job Losses

    Government wants ArcelorMittal to sell its Saldanha Bay plant, rather than shut it down.

  • Ferial Haffajee

    South Africans are a cynical lot. Are we are missing that the business investment strike is over?


IMF sees Namibia growing in 2020 after three-year contraction

Sep 14 2019 10:00
Prinesha Naidoo, Bloomberg

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. 

namibia  |  economic growth  |  imf  |  africa economy  |  gdp


Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote