WINDHOEK, March 24 (Xinhua) -- Namibian research firm IJG Securities said Friday that they expect further contractions in the construction sector in 2017 and beyond.
The research firm said in a report that 2017 was off to a slow start with only 231 building plans having been approved in the first two months while 48 were completed, the lowest numbers in the last seven years.
"As a leading indicator for economic activity in the country this implies that the whole economy could remain under pressure for the foreseeable future," IJG said.
IJG said with government spending on infrastructure slowing and the current economic situation that makes it increasingly difficult for banks to extend credit, it is a cause for concern as the sector provides a substantial number of jobs.
"This decline is worrying as construction has been a major driver of growth in the last couple of years, and our overall GDP growth figures are likely to slow," IJG added.
