Namibia's economy to shrink in 2017: IMF

WINDHOEK, Dec. 12 (Xinhua) -- Namibia's economic growth is expected to enter negative territory in 2017 compared to a growth of 1.1 percent last year, the International Monetary Fund (IMF) said on Tuesday at the end of its mission to the Southern African country.

The contraction comes as construction of large mining projects has been completed and as the government continues with its budget consolidation efforts.

"After years of exceptional growth, the economy has entered an adjustment phase. Growth is expected to turn slightly negative in 2017," the IMF said at the conclusion of the 2017 Article 1V Mission to Namibian.

Growth is expected to resume in 2018 and accelerate thereafter to about 4 percent as production from new mines ramps up and manufacturing and retail activities recover.

Downside risks include volatile Southern African Customs Union (SACU) revenue, subdued commodity prices and fiscal slippage that could undermine policy credibility.

"With SACU revenue declining, significant fiscal adjustment is needed to ensure debt sustainability and macro-economic stability," the IMF said.

Namibia's economy shrank by 1.7 percent in the first and second quarters of this year. Enditem