Last year, Namibia’s economy expanded one percent less than what’s been projected for 2014 (5.4 percent). Over this year and the next, according to The Namibian, the country’s central bank announced that the global and domestic economic strength of the country will see growth.
In a Bank of Namibia outlook report, which was quoted in The Namibian, the sourcing of domestic economic growth will come from large projects within the mining and energy sector.
“Growth will be supported by domestic economic activities, such as the construction of some relative mega projects…Growth is expected to moderate in 2015, as some mining projects near completion,” the Bank of Namibia report disclosed.
The article further revealed that infrastructural investments in mining and manufacturing will also be the driving forces behind expected growth throughout sub-Saharan Africa.
“South Africa is a notable exception where growth could be lower than the projected 2.3 percent and 2.7 percent in 2014 and 2015, respectively. The country is marred by labor issues alongside a still fragile external environment,” Namibia’s central bank stated.
In 2013, the sub-Saharan region experienced 4.9 percent growth. This year, expansion is projected to reach 5.1 percent while growth is said to jump to 5.9 percent in 2015.
Threats to economic expansion within the entire region may come by way of slips in South Africa’s exportation of livestock, as well as capital flows related the U.S. monetary policy, The Namibian wrote.
“If the above risk is prolonged, the domestic economy under the downside scenario is expected to slow to 5 percent in 2014. Other risks include further moderation of growth in the Namibian economy on account of depressed mineral prices, particularly of uranium with consequences for future investment and economic growth,” the central bank report concluded.