Namibian economic growth set to drop further this year: minister

Namibia's Minister of Finance, Calle Schlettwein said for the current year, they see growth for the economy significantly slowing, from 5.3 percent recorded last year to about 4 percent, or even lower.

The minister said this on Friday and attributed the slowdown in economic activity to external as well as domestic factors which have impacted Namibia.

Schlettwein said that Namibia is wedged between two large neighbouring economies and trading partners which are faced with severe structural challenges.

"The South African economy, which is most closely linked to Namibia is growing at about 0.1 percent. At the same time, Angola, which is another main trading partner and source of external demand for Namibia is undergoing difficult times due to the oil price collapse," he said.

These activities, according to Schlettwein, have already adversely affected the retail sector.

"The low growth for the South African economy is a concern not only for trade, but taxes from trade," he added.

Furthermore he said the economy is slowing down due to the slowdown and low demand in major trading partners.

"The Emerging Markets Economies, which have been a source of growth since the global financial crisis, are undergoing tough, adjustment times," he said.

Meanwhile, in terms of domestic factors he said the severe drought situation, water shortages has had effects on industries that are dependent on water such as construction and beverage industries. Endit