SA economists predict 4,1% growth for Namibia

JOHANNESBURG – Namibia’s economic growth is likely to slow to 4,1 per cent this year after floods destroyed infrastructure and crops and cut output in the mining sector, a Reuters poll showed yesterday.

A survey of nine economists estimated that Namibia’s growth would brake to a median 4,1 per cent before accelerating to 4,7 per cent next year.’Adverse weather conditions left output in Namibia’s mining and transport sectors under pressure during the first quarter of 2011,’ said Thea Fourie, economist at IHS Global Insight.Floods destroyed infrastructure and damaged crops early this year. Similar floods in 2009 caused around N$ 4,2 million worth of damage, which is nearly 10 per cent of the country’s gross domestic product.’Expectations for growth have been rolled back in recent months as it became evident that the heavy rainfall reduced the country’s mining output,’ said Christie Viljoen, senior economist at NKC Independent Economists'[The floods] hurt crop production while animal and meat exports to South Africa were also impacted.’ Viljoen said.BUDGET DEFICITEconomists projected a budget deficit of 5,7 per cent of GDP for the 2011-12 financial year, narrowing to 4,9 per cent next year. The forecasts are smaller than the Government’s projected gap of 9,8 per cent this year and 5,2 per cent in the 2012-13 financial year.Fourie said he expected significant donor inflows for flooded areas to boost Government coffers and help to narrow the deficit.Inflation is forecast to average a median 5,5 per cent this year before accelerating to six per cent next year. – Nampa-Reuters