In-Depth Analysis
Namibia
Namibia is a small economy with an overreliance on certain key exports, namely diamonds, copper and fish. Relatively large fiscal deficits since 2009 and challenges in narrowing the shortfall have caused rapidly rising government external debt levels. The country has low political risk, characterised by regular, peaceful, democratic elections.
We still expect the economy to suffer a third-straight contraction in 2019, due to a decline in diamond production, weak prices for Namibia’s main export commodities, severe drought and a continued decline in construction output due to a slowdown in investment. The weak economic performance, as well as a spate of recent corruption scandals, has started to eat into the ruling Swapo party’s electoral dominance. Although Swapo won the 2019 election comfortably, it lost its two-thirds majority in Parliament and significant support among younger and middle-class voters. (Source: Namibia Quarterly Update, December 2019)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-4.8 |
|
Consumer Price Index (% change y-o-y, avg) |
4.3 |
|
Current Account Balance (as a % of GDP) |
-2.4 |
|
Real GDP (annual % change) |
-0.5 |
|
GDP per capital, US$ |
5,926.6 |
|
Import Cover (months) |
4.0 |
|
Population, million |
2.4 |
| Total External Debt (as a % of GDP) |
58.1 |