By Staff Reporter
WINDHOEK, July 7 — Money Supply M1 in Namibia decreased to 75110.90 Namibian dollars (NAD) million in May 2023 from 77033.40 NAD million in April 2023. This represents a decrease of 2.4%.
Money Supply M1 is a measure of the amount of money in circulation, including cash and checking deposits. A decrease in Money Supply M1 can be a sign of economic weakness, as it suggests that people are holding onto their money rather than spending it.
There are a number of factors that could have contributed to the decrease in Money Supply M1 in Namibia. One possibility is that the country’s central bank, the Bank of Namibia, may have tightened monetary policy in an effort to control inflation. Another possibility is that businesses and consumers may be more cautious about spending due to uncertainty about the economic outlook.
The decrease in Money Supply M1 is a negative development for the Namibian economy. It could lead to slower economic growth and higher unemployment. However, it is important to note that the decrease is relatively small, and it is possible that the Money Supply M1 will rebound in the coming months.
The Bank of Namibia will be closely monitoring the Money Supply M1 and other economic indicators in the coming months. If the decrease in Money Supply M1 continues, the Bank of Namibia may need to take further action to stimulate the economy. – Namibia Daily News
