Economy to grow beyond four per cent

NAMIBIA’S economy might grow by 4.3 per cent in 2007 and will be mainly carried by mining, tourism and the services industry, a leading economic expert has predicted.

Johannes !Gawaxab, who is the Managing Director of Old Mutual Africa Operations, said that inflation might however increase during the first half of the new year, driven by food, clothing and transport costs. “We expect inflation to drift gradually lower in the second half of 2007,” !Gawaxab said in a review issued at the end of last week.Banks could however hike interest rates by another 50 basis points (0.5 per cent) as early as February “and keep rates on hold for an extended period unless there are shocks to the system,” he added.!Gawaxab expects the Namibian dollar, which is linked to the South African rand, to fluctuate in the new year.”Both currencies are expected to trade in the 6.80 to 7.40 range and expected to average [around] N$7.10 to the US dollar in 2007.”Property prices could drop slightly in the new year.”Property demand along the coast and the growth areas are expected to remain stable,” !Gawaxab projected.”We expect inflation to drift gradually lower in the second half of 2007,” !Gawaxab said in a review issued at the end of last week.Banks could however hike interest rates by another 50 basis points (0.5 per cent) as early as February “and keep rates on hold for an extended period unless there are shocks to the system,” he added.!Gawaxab expects the Namibian dollar, which is linked to the South African rand, to fluctuate in the new year.”Both currencies are expected to trade in the 6.80 to 7.40 range and expected to average [around] N$7.10 to the US dollar in 2007.”Property prices could drop slightly in the new year.”Property demand along the coast and the growth areas are expected to remain stable,” !Gawaxab projected.