IMF says Namibia's GDP growth will mod­er­ate to 4pc

The Pak Banker - - Front Page -

WASH­ING­TON

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.

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