MINING AND TOURISM SECTORS TO DRIVE GROWTH IN 2017

by adminJanuary 27, 2017

One of Namibia’s leading stock brokerages, Simonis Storm Securities (SSS), expects domestic economic growth for 2016 to be 2.5 percent, down from the 5.3 percent in 2015

The main drivers of this reduced growth include a struggling Fiscus and slower private sector credit extension (PSCE), which have led to significantly slower construction activity.

Construction has been the main private sector driver of the economy over the last three years.

At the same time the looming water crisis has severely affected the manufacturing and agricultural sectors. SSS expects expect 2.8 percent GDP growth for 2017, mainly on the expectation of a strong mining sector in 2017.

He noted that sectors that are expected to continue to perform poorly are fishing, due to scarce resources and regulatory challenges, and construction, due to indebtedness and lower government spending

Interest rates are anticipated to rise during the course of 2017 and SSS expects the Bank of Namibia to hike the benchmark repo rate at least twice in 2017 by a total of 0.50 percent.

This is on the back of at least one rate hike in South Africa and the United States.

 

Ref: https://www.newera.com

 

 

 

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