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WINDHOEK, Feb. 11 (Xinhua) -- Namibia's economy needs confidence, investments and COVID-19 vaccination to return to normality, the country's central bank governor, Johannes Gawaxab said Thursday.
Gawaxab highlighted this during an economic round-table with chairpersons of the board of directors and CEOs of private sector companies that mobilize investments and savings in the country.
According to Gawaxab, the current weak growth being witnessed in the domestic economy is clearly reflected in some critical elements of the national income identity -- consumption spending by households which is constrained because of soaring unemployment as a result of COVID-19 pandemic, while government spending is equally constrained due to limited fiscal space.
"Net exports are also severely affected by global demand and low commodity prices. The most critical element that can be relied upon at this critical moment to help grow the Namibian economy is investments, both domestic and foreign direct investments," he said, adding that concerted effort both from the public and private sector is needed to unlock the country's investment potential.
The governor said Namibia's economy shall recover gradually by 2.6 percent during 2021, of which this is predicated by the opening up of the global economy, after the lockdowns and restrictions on travel experienced in 2020 due to the COVID-19 pandemic.
"Demand for Namibia's exports (especially minerals) is expected to start picking up gradually in 2021 as major economies are projected to make full recoveries, which bodes well for the recovery of the domestic economy," he added.
Meanwhile, the round-table agreed that Namibia should pursue an aggressive economic turn-around strategy to enhance growth and income outcomes. Enditem