Nam economy still in good shape: BoN

NAMIBIA is weathering the worldwide financial storm and despite the global hostile environment, the country has managed to escape the claws of recession, Bank of Namibia (BoN) Governor Tom Alweendo said on Tuesday.

Though well on its way to the meagre growth of one per cent expected this year, the local economy remained sound in the last quarter of 2008, he stressed.’Notwithstanding the global economic crisis, the Namibian economy performed fairly well in 2008 with gross domestic product (GDP) estimated at 2,7 per cent – although, this is a deceleration from 4,1 per cent in 2007,’ Alweendo said when he released the BoN’s latest Quarterly Bulletin and the 2008 Annual Report.However, he was quick to add that Namibia will only feel the ‘full brunt’ of the economic crisis this year, with a ‘modest recovery possible’ next year.For now, the Namibian economy is relatively healthy.Namibians’ appetite for credit continues to be dampened, BoN’s figures show. During the fourth quarter, it decreased further to 2,3 per cent, down from 2,9 per cent in the third quarter. The value of bad loans also dropped by N$125 million and totalled N$854,7 million.The State coffers are in satisfactory shape too. Government debt stood at N$13,2 billion or 19,6 per cent of GDP, well within internationally accepted targets.At the end of last year, the country’s balance of payments hit a record high of N$6,3 billion, boosting international reserves to about N$12,7 billion. This is enough to cover Namibia’s imports for more than four months.The primary sector recorded mixed performances.Uranium, and even diamond, production increased in the fourth quarter. So did horticulture. As expected, the fishing sector still finds itself in stormy waters, while agriculture took a knock because of less livestock marketed.Diamonds to the value of N$1,2 billion were exported, N$100 million more than the third quarter. According to the BoN, the weakening of the Namibia dollar against the American dollar mainly contributed to the higher export value.Uranium exports exceeded that of diamonds and totalled N$2,2 billion. Gold worth N$261 million left Namibia, significantly more than the N$174 million of the preceding quarter. More copper blister, silver and zinc concentrate, in total worth N$397 million, were exported. Only lead exports declined and fell from N$63 million to N$39 million in the fourth quarter.Export revenue for live cattle, small stock and game dropped by 37,8 per cent to N$135,4 million line with the decline in the marketed numbers.According to the BoN, Namibia’s secondary industry performed well in the fourth quarter. Growth in this sector was mainly due to increased manufacturing of mineral products, especially zinc and copper, as well as production of beer, liquor and soft drinks. Beer production for the quarter jumped by nearly 30 per cent, while about 47 per cent more soft drinks were produced.Namibia’s revenue from manufactured exports grew by some 20 per cent.On the tertiary front, some economic indicators like transport and company registrations performed poorly. Others, like vehicle sales, perked up.Vehicle sales, thanks to bulk purchases by Government, rose nearly nine per cent in the fourth quarter. Tourism, as reflected by room occupancy, also grew by nearly six per cent.Commenting on prospects in the medium-term, Governor Alweendo said export-oriented industries like mining, tourism and travel are likely to suffer even more this year. The secondary and tertiary industries are also expected to slump deeper.jo-mare@namibian.com.na