Namibia - The Bank of Namibia (BoN) might lower its economic growth expectations as the country's export industries continue to suffer under global uncertainties such as the debt crisis, persisting unemployment and the turmoil in North Africa and the Middle East. "Namibia's recovery is not consolidating firmly," BoN Governor Ipumbu Shiimi said yesterday, adding that the bank is busy revising its current forecast of gross domestic product growth of 4,1 per cent for 2011. The new figure will be announced shortly, he said. The Monetary Policy Committee (MPC) of the central bank to keep the repo rate unchanged at six per cent for the fifth time in a row. The decision was made to give "the economy some breathing space", Shiimi said.

He said domestic economic indicators pointed downwards for much of the first half of the year. "The weakest performance was recorded in the primary industry, where the mining sector performed poorly in terms of production and exports, followed by the agricultural sector," Shiimi said.

Manufacturing and construction fared better, allowing the secondary industry to show a positive growth. However, this was "too marginal to positively affect overall growth," the Governor said.

"Dismal outturn" in the wholesale and retail sector weigh down the tertiary industry, he said. Linked to this, was the slowdown in private sector credit extension.

According to Shiimi, households are still struggling to recover and paying off the high debt levels.

On the inflation front, Shiimi said price pressures continue to build up, but "remain in the tolerable levels".

He said the BoN stands ready to adjust its monetary policy in the interest of price stability if conditions demand so.

Jo-Maré Duddy

The Namibian/23/06/2011