World Bank forecasts slower growth rate for Namibia

The World Bank forecasts that Namibia’s economic growth will slow to 2,8% in 2023, down from 4,6% in 2022.

This is slightly lower than the International Monetary Fund’s projection of 3,2% growth for Namibia this year.

The World Bank’s ‘Africa’s Pulse’ report attributes the slowdown to relatively high inflation and monetary tightening, and lower growth in South Africa and Europe.

However, the report also highlights Namibia’s positive economic contributors, stating that “growth was supported by greater mining output in particular, uranium, and diamonds thanks to mineral exploration activities”.

Additionally, “investments and net exports” played crucial roles in supporting the economy.

The report also highlights the impact of larger economies on sub-Saharan Africa’s economic performance, stating that “South Africa’s gross domestic product is expected to grow at 0,5% in 2023 as energy and transportation bottlenecks continue”.

Namibia faces the challenge of navigating these economic headwinds while recognising its position within the broader African economic landscape.

The World Bank’s report advises that “regional cooperation and strategic policy measures are likely to be pivotal in addressing these challenges and working towards sustained economic growth and prosperity”.

The World Bank’s report extends its analysis to sub-Saharan Africa (SSA) as a whole, projecting that “economic growth in sub-Saharan Africa is expected to slow to 2,5% in 2023, from 3,6% in 2022”.

It notes that “per capita growth in the region has not increased since 2015”.

Within the SSA regions, Namibia falls under the eastern and southern African subregion.

According to the report, this subregion is expected to experience a growth rate of “1,9% in 2023, down from 3,5% in 2022”.

On the other hand, the western and central African subregion is projected to grow at “3,3% this year, compared to 3,8% in 2022”.

“Namibia, along with its fellow middle tercile nations, must adapt to the changing economic landscape, leveraging its strengths to overcome the challenges and seize opportunities for future growth,” the bank notes.

– The Brief