From All Africa

The IJG Business Climate Index increased by 0,8 index points from 146,8 in September to 147,6 in October. The new level represents the highest level registered by the index since its inception, and is the second record breaking level in as many months.

The Institute of Public Policy Research (IPPR) said yesterday in a report that, following the rebasing of the Namibia Consumer Price Index, the Business Climate Index too has required rebasing. The new basket of goods that makes up the Namibian Consumer Price Index generally results in lower inflation, due to the smaller food component, which results in a lower inflationary discount for the index indicators, which in turn pushes the Business Climate Index up marginally.

In October, the Investment Index expanded by 3,1 index points. This expansion was due to strong growth in the Namibia Stock Exchange’s Local Index, which grew by 10,2 index points. Additionally, strong growth in credit extension to businesses, on the back of historically low interest rates, further bolstered the increase in the index. Strong expansion was also experienced in commercial vehicle sales, partly attributed to the purchase of commercial vehicles by the mining sector and purchases by government agencies, the IPPR said.

The report said decreases in inflation, the US dollar exchange rate and international oil prices were offset by increased vehicle sales and credit extension to individuals leading to a 2,6 points rise in the Consumption Index.

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