In-Depth Analysis
Namibia
The economy is small with an overreliance on certain key exports, namely diamonds, uranium, and fish. Relatively large fiscal deficits since 2009 have caused rapidly rising government external debt levels and slipping credit ratings. Rock-bottom diamond sales and quiet airport lobbies amid the Covid-19 crisis were major blows to the economy in H1 2020.
We forecast that real GDP will expand by a relatively moderate 3.1% in 2021 from the sharp contraction of 8.0% last year. The recovery will be supported by reduced Covid-19 containment measures and improved demand for Namibia’s commodity exports. However, weak household balance sheets and continued pandemic-related travel restrictions will weigh on the services sector. In the short- to medium term the ruling Swapo will feel the pressure to implement socioeconomic reforms to stem their loss of electoral support. (Source: Namibia Annual Country Profile, published May 2021)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
-9.4 |
|
Consumer Price Index (% change y-o-y, avg) |
2.2 |
|
Current Account Balance (as a % of GDP) |
1.9 |
|
Real GDP (annual % change) |
-8.0 |
|
GDP per capita, US$ |
4,215.6 |
|
Import Cover (months) |
5.79 |
|
Population, million |
2.5 |
| Total External Debt (as a % of GDP) |
73.4 |