Namibia’s GDP growth is projected to slow down in 2023 and 2024, mainly due to the weaker global demand and anticipated contraction in agriculture.

This was said by Bank of Namibia in its ‘Economic Outlook Update’ for December.

The Bank of Namibia says that the domestic economy is estimated to grow by 3.9 percent in 2023, before moderating to 3.4 percent in 2024.

The estimated growth of 3.9 percent in 2023 represents a slowdown from 7.6 percent recorded in 2022 but was revised upwards from 3.3 percent published in the August 2023 Economic Outlook.

The projected slowdown in 2023 growth is largely on account of weaker demand in global and domestic economies, underpinned by high inflation and high interest rates that have a negative impact on consumer spending.

Another factor contributing to the slowdown in 2023 growth is the high base effects from the mining industry, where diamond mining and other mining and quarrying (which includes prospecting) expanded by 45.1 percent and 144.2 percent, respectively, in 2022.

In the photo: The electricity sector is expected to maintain a strong growth in 2023.