WINDHOEK, June 5 (Xinhua) -- Namibia's economy will continue to mildly contract this year and recover gradually thereafter, the International Monetary Fund (IMF) said on Wednesday.
Namibia's central bank said in April that economic growth will be around 0.3 percent in 2019 after contractions in 2018 and 2017, but the IMF said it expects the economy to recover only gradually this year.
"Growth is projected to remain mildly negative in 2019, as a poor rain season and reduced diamond production continue to weigh on a tentative recovery," the IMF said.
It said downside risks to this outlook include lower than expected Southern African Customs Union revenue and fiscal slippages that would undermine the government's efforts to stabilize public debt dynamics.
