Namibia's Economy Expected To Grow 2.1 Pct In 2021

Namibia's economy is likely to post a moderate growth of 2.1 percent this year, further rising 2.8 percent in 2022 and average around 3.4 percent by the end of 2024, authorities said on Wednesday

WINDHOEK, (UrduPoint / Pakistan Point News - 18th Mar, 2021 ) :Namibia's economy is likely to post a moderate growth of 2.1 percent this year, further rising 2.8 percent in 2022 and average around 3.4 percent by the end of 2024, authorities said on Wednesday.

"All major industry sectors are forecast to post a moderate positive growth in 2021 relative to the sharp contraction in the past year," Finance Minister Ipumbu Shiimi told lawmakers as he presented the budget.

"Economic recovery is expected to be anchored by the growth in the mining industries, particularly the rebound in mining activities," Shiimi added.

The budget deficit is expected to stand at 8.6 percent of gross domestic product (GDP) in the 2021-2022 fiscal year, down from an estimate of 9.

7 percent in 2020-2021.

According to Shiimi, the budget deficit will be financed through a combination of domestic and external borrowings.

Namibia expects budget revenue to decline by 6.1 percent to 52.1 billion Namibian Dollars (about 3.6 billion U.S. dollars) in the fiscal year, from the estimated 55.5 billion Namibian dollars (about 3.83 billion U.S. dollars) in 2020-2021.

The minister said the dwindling revenues are largely due to the expected contraction in the Southern African Customs Union (SACU) receipts.

The revenues are expected to gather pace at an average rate of 4.8 percent as domestic economic activities and regional trade pick up, Shiimi added.