Business
Namibia’s economy to grow 4.2 percent in 2012
The Namibian government has undertaken a number of measures to help the economy and left the bank rate at a historical low of 6.0 percent for the last year and a half, after cutting it by 450 basis points to stimulate a struggling economy.
The government has also embarked on its Targeted Intervention Programme for Employment and Economic Growth (TIPEEG) as a fast-track dispensation for job-creation and stimulus for high economic growth in the long-term.
“A loose monetary policy combined with government’s TIPEEG program should support the economy despite the vulnerable global environment, especially in the financially crisis stricken European Union (EU),” Fourie said.
Inflation is seen averaging 6.3 percent this year and easing to an average of 5.9 percent next year.
Consumer prices have been surprisingly moderating due to easing food and fuel prices, Namibia’s inflation slowed to 6.0 percent in May from 6.4 percent previously while neighboring South Africa braked to 5.7 percent from 6.1 percent in April.
The Namibian dollar is pegged to South Africa’s rand and so shares the advantages and disadvantages of that volatile currency.
An advantage is that, according to analysts, the rand could turn the tide against a much stronger dollar in 12 months , which would benefit the inflation outlook for both countries, allowing the coastal nation to further focus on growth.
