IMF says Namibia's GDP growth will moderate to 4pc
An International Monetary Fund (IMF) mission visited Namibia during October 29 to November 9, 2012 to conduct discussions for the 2012 Article IV Consultation.
The IMF mission's work focused on reviewing recent economic developments and prospects and policies to ensure continued macroeconomic stability and growth. The IMF mission met with Minister of Finance Honorable Saara KuugongelwaAmadhila; Deputy Minister of Finance Honorable Calle Schlettwein; Bank of Namibia Governor Ipumbu Shiimi, Permanent Secretary of Ministry of Finance Ms. Ericah B. Shafudah; senior government officials, development partners, and representatives from the private sector and civil society.
At the end of the mission, Mr. Lamin Leigh, the IMF Mission Chief for Namibia said during the first half of 2012 economic recovery in Namibia was supported by a strong rebound of the primary sector, most notably minerals. Yet, given the downside risks to the near-term global economic outlook, the mission forecast that real GDP growth will moderate from about 5 percent in 2011 to 4 percent in 2012. Driven by food and fuel prices, inflation rose significantly to 7 percent (year-onyear) at end-December 2011, but is expected to decline to about 6 percent by end-2012.
After an increase in development spending in the last year driven largely by the government's temporary Targeted Intervention Program for Employment and Economic Growth (TIPEEG), keeping public debt sustainable would require strict adherence to the government's medium-term fiscal plan aimed at delivering fiscal surpluses by 2014/15. Fiscal consolidation will help to rebuild the policy buffers. Consistent with the government's medium-term fiscal strategy, spending under the TIPEEG initiative is planned to run out at the end of FY2013/14.