Business
Namibia’s economy to grow 4.2 percent in 2012
The global downturn could put the brakes on Namibia’s economy, but analysts remain optimistic on the country’s ability to shrug off external shocks given increased consumer spending and the government’s loose fiscal policy.
Namibia, which relies heavily on mining and is a major uranium producer is expected to grow 4.2 percent this year, in-line with the central bank forecast of 4.2 percent and up from 3.8 percent growth last year, a Reuters poll showed on Thursday.
The poll of ten analysts estimates that the mineral-rich nation will expand 4.5 percent next year.
“Namibia’s domestic economic activity remains resilient, as suggested by strong motor vehicle sales in Q1, rising private sector credit growth, and a sharp increase in building activities,” said Thea Fourie, economist at IHS Global Insight.
Foreign firms have been planning to exploit the southern African country for gold, lead, zinc and iron ore, though uncertainty about the global economy and sporadic demand from China could hamper commodity prices, knocking growth.
“Even as global headwinds take their toll on the export-dominated economy investment and government spending will help to pick up some of the slack over the medium term.” said Gregan Anderson, analyst at Business Monitor International.
Angola, just north of Namibia along the west coast of southern Africa, boasts growth prospects of 10 percent this year on strong oil revenues – dwarfing its neighbours other than Zambia, which sees 7 percent.
