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 now project a meagre recovery from the severe slump last year, with real GDP expanding by only 1.6% in 2021. The services sector will continue to be hamstrung by frugal fiscal expenditure, deteriorating real disposable incomes, higher unemployment, and Covid-19 travel restrictions. Namibians are becoming increasingly frustrated with their socioeconomic circumstances, leading many to turn to populist movements that promise positive change. (Source: Namibia Quarterly Update, published July 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) |
2.6 |
|
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 |