Namibia lowers its growth projection for 2025 because of an industrial downturn
Namibia’s finance minister stated on Tuesday that the country’s manufacturing sector is expected to decrease, lowering the country’s economic growth forecast for this year from the 4.5% projection made when the main budget was presented in March to 3.3%.
According to Ericah Shafudah, who reviewed the mid-year budget, manufacturing activity has been hindered thus far this year by decreased diamond processing, as well as decreased output of blister copper and cement.
The primary industry in the Southern African nation has a more promising future, growing 2.5% this year as opposed to 1.8% last year because to increased uranium and other mineral mining.
Shafudah noted that the average increase for the upcoming three fiscal years is expected to be 3.6%, which is lower than the previous 4.3%.
She also cited a decline in the direction of state finances.
In contrast to the previous fiscal year, when the deficit was 2.0% of GDP, Namibia’s budget deficit increased to 4.0% of GDP last fiscal year.
“If left unattended (the worsening trend) is highly undesirable and will lead to serious deterioration of key fiscal anchors such as the debt-to-GDP ratio,” Shafudah stated.
The central bank of Namibia lowered its main lending rate (NACBIR=ECI) by 25 basis points to 6.50% last week in an effort to boost the flagging economy.
