Primary industries to anchor economic recovery

WINDHOEK, 25 OCT  – Primary industries are estimated to grow by about 5,7 per cent in 2018 and anchor economic recovery over the medium-term.
This was said by Minister of Finance, Calle Schlettwein when he tabled the Mid-Year Budget Review for the 2018/19 financial year in the National Assembly on Wednesday.
He said the projection follows robust growth of 10,6 per cent in 2017.
The minister further said secondary industries’ output is expected to remain in contractionary territory due to recessionary pressures in the manufacturing and construction sectors over the remainder of this financial year.
Meanwhile, the tertiary service sector which accounts for over 57 per cent of the Gross Domestic Product (GDP) is estimated to continue experiencing recessionary pressures this year, posting an estimated contraction of about 14 per cent, owing to continued weak domestic consumption demand weighing on the wholesale and retail sector and fiscal consolidation effects across the public sector.
“In the best case scenario, this sector is only expected to ease out of recessionary pressures in 2019,” the minister said.
He further said on the demand side, consumption demand remains weak on account of policy neutrality and highly leveraged private and household sectors.
The estimated decline in consumption demand by 1.7 per cent in 2018 indicates a slow easing from the contraction of 3.3 per cent in 2017 as private consumption remains benign. The weak domestic demand conditions are reflected by the slowdown in year-to-date Private Sector Credit Extension relative to the previous corresponding period.
(NAMPA)