WINDHOEK, FEB 9 — Namibia’s road to economic recovery will be spearheaded by the expansion in the manufacturing and mining sector, which will lead to job creation and wage growth, Fitch Solutions Macro Research said in a report Friday.
The developments will support domestic demand which bodes well for consumer-facing companies, the research firm said.
“Expansion in mining activity and manufacturing will support job creation and wage growth, driving expansion in the retail sector in 2019,” the firm said.
The ramp up in uranium production at Husab mine following a series of delays to achieving full production will provide a key boost to overall economic activity as well as a boost from the manufacturing sector, driven by higher production of grain mill products and beverages, the firm added.
According to the firm, job losses in primary and secondary sectors of mining, construction and manufacturing have had a direct adverse impact on wholesale and retail trade over recent years, as higher unemployment has weighed heavily on consumer demand.
“A more favorable macro outlook will drive Namibian consumer spending in 2019. Our forecast for Namibia’s private consumption growth is 1.9 percent in 2019, following an estimated contraction of 0.4 percent in 2018,” Fitch added.
Namibia’s real Gross Domestic Product is projected to average 2.1 percent over the 2019 to 2023 forecast period, said Fitch. – XINHUA
Namibia’s manufacturing, mining sector to lead economic recovery: Fitch
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