WINDHOEK, Jan. 22 (Xinhua) -- Namibia's Gross Domestic Product (GDP) is expected to increase by 0.9 percent and 1.5 percent in 2020 and 2021 respectively, according to an investment research firm, Simonis Storm Securities (SSS) in a Quarterly Economics and Fixed Income 1Q2020 report released Wednesday.
This is mainly on the back of better rainfall prospects that could result in improved agriculture harvest and cattle restocking, said SSS Analyst, Indileni Nanghonga.
"Furthermore, the mega road and infrastructure projects expected in 2020 could spur growth in the construction industry," she added.
According to Nanghonga the wholesale and retail sector, which is the biggest contributor to real GDP, is declining due to lower spending caused by high unemployment and consumer indebtedness, while the mining and manufacturing sectors, contributing each about 10 percent to real GDP, are facing structural challenges.
"Weak commodity prices coupled with mines going into care and maintenance like Langer Heinrich and Trekkopje facing possible closure, are threatening the medium-term outlook of the sector," she said.
Meanwhile, weak and uncertain policies and regulations are some of the contributors to a struggling sector, she added.
"Economic recovery will be unlikely if the following are not addressed: ambiguous communication to investors, slow or no structural reforms, lack of accountability, lack of private sector engagements, slow execution, corruption and lack of common goals," she concluded.
