Namibia is a politically stable upper-middle income country with a tiny population and good infrastructure. Mining plays a very important role in the economy, and is the main source of export revenues. The main challenges the economy faces are to do with persistently high unemployment and income inequality. Amidst rapidly rising public debt, the government will have to carefully manage fiscal consolidation over the next few years.
The large current account deficit is also a concern, mainly as a result of the weaker commodity prices and reduced revenues from the Southern African Customs Union, although increasing mining output should alleviate this in the coming years. Rising public debt and household indebtedness are causes for some concern.
Having posted an average rate of economic growth of 4.2% over the past 10 years, Namibia’s economy is set to expand at a more moderate rate around 3% over the next few years.
For more information, download Quantum Global Research Lab’s report, An Overview of the Namibian Economy.