1. Namibia’s Economic Outlook: The Storm Continues?
October 2018
By Iipumbu Shiimi – Governor

2. Content - Economic growth Global and Regional growth
The Domestic Economy
- Economic growth
- Fiscal developments
- Public Wage Bill
Economic Outlook
The Way Forward

3. Global and Regional growth
The World Economy did not recover to pre-crisis levels

4. Global and Regional growth (Continued)
Growth in some key trading partners for Namibia disappointed since 2015

5. Domestic Economy

6. Domestic growth
Namibian economy contracted in 2017, mainly due to contractions wholesale & retail trade, construction and taxes on products

7. Domestic growth (continued)
GDP contracted by 0.2 percent in the first half of 2018 (Quarterly National Accounts)

8. Domestic growth (continued)
GDP excluding Government sectors performed better

9. FISCAL POSITION

10. Fiscal outturns
Fiscal deficits as a ratio of GDP improving since 2015/16, but still high

11. Central Government Debt
Total debt over 40.0 percent of GDP

12. South Africa

13. Botswana

14. Public wage bill

15. Public Wage Bill

16. Public Wage Bill (cont.)
High Expenditures, yet Poor Outcomes
Public Wage Bill, Health, Education and Military Spending, and Outcomes

17. Public Wage Bill (cont.)

18. Public Wage Bill (cont.)

19. Economic Outlook

20. Global and Regional outlook
World growth to remain steady at 3.7 percent (IMF WEO, October 2018)

21. Regional outlook
Growth to remain low for South Africa and contraction for Angola in 2018 (IMF WEO, October 2018)

22. Domestic outlook
Which industries will support marginal growth going forward?

23. Fiscal projections
Budget deficit as a ratio of GDP projected to improve

24. The way forward Water & Electricity are critical
Focus on priority areas i.e. Agriculture, tourism, logistics and housing
Scale up SME support
Continue to improve the quality of education and TVET
Consolidation must continue to build fiscal buffers
Action and accountability