Economy picks up in Q2

NAMIBIA’S economy picked up during the second quarter as most sectors performed favourably, the Bank of Namibia (BoN) has said.

In a statement released yesterday, BoN Deputy Governor Paul Hartmann said compared to a general slowdown in the global economic growth, Namibia had done well between April and June. “Contrary to the developments in the major global economies, economic activities in Namibia were estimated to have picked up during the second quarter of 2006.”Available economic indicators suggest that the performance of most sectors of the economy was remarkable when compared to the preceding quarter,” he said.Strong performances were recorded in sectors such as mining and quarrying, wholesale and retail trade, motor-vehicle repair and household goods, hotels and restaurants, electricity, gas and water.However, the agricultural and construction sectors continued their downward trend of regressive performance.Government debt also rose by 6,7 per cent when compared to the first three months of the year.Said Hartmann: “This increase was mainly ascribed to the steep increase in foreign debt, supported by a moderate increase in domestic debt.The rise in foreign debt is ascribed to new disbursements on existing loans and two new loans granted to Government during the period under review.”Broad money supply grew during the second quarter by 9,6 per cent compared to eight per cent in the first quarter.Overall annual inflation rose to 4,9 per cent from four per cent registered in the first quarter.The rise was significant when compared to the corresponding period of 2005 – when it stood at 1,3 per cent.The rise was attributed to the increases in food, non-alcoholic beverages and transport.”Contrary to the developments in the major global economies, economic activities in Namibia were estimated to have picked up during the second quarter of 2006.”Available economic indicators suggest that the performance of most sectors of the economy was remarkable when compared to the preceding quarter,” he said.Strong performances were recorded in sectors such as mining and quarrying, wholesale and retail trade, motor-vehicle repair and household goods, hotels and restaurants, electricity, gas and water.However, the agricultural and construction sectors continued their downward trend of regressive performance.Government debt also rose by 6,7 per cent when compared to the first three months of the year.Said Hartmann: “This increase was mainly ascribed to the steep increase in foreign debt, supported by a moderate increase in domestic debt.The rise in foreign debt is ascribed to new disbursements on existing loans and two new loans granted to Government during the period under review.”Broad money supply grew during the second quarter by 9,6 per cent compared to eight per cent in the first quarter.Overall annual inflation rose to 4,9 per cent from four per cent registered in the first quarter.The rise was significant when compared to the corresponding period of 2005 – when it stood at 1,3 per cent.The rise was attributed to the increases in food, non-alcoholic beverages and transport.