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Macroeconomic Overview
Economic Structure and Performance
Namibia is blessed with rich natural resources, a well-developed physical infrastructure and political stability. The country enjoys a relatively high GDP per capita of US$1,810 (1998), four times as high as the average for sub-Saharan Africa, which classifies Namibia as a middle-income country.
The Namibian economy heavily relies on the primary and the tertiary sectors. Agriculture, especially large-scale commercial livestock farming, fishing and mining are the backbones of the economy, while services account for a major share of GDP. The manufacturing sector is steadily growing and is mainly based on fish, food and meat processing activities.
Economic performance in Namibia is dictated largely by external factors like the weather, oceanic conditions and international commodity prices. In particular, world market prices for diamonds and uranium, of which Namibia is the fifth and sixth largest global producer by value, respectively, have a determining impact on the whole economy.
Average real economic growth amounted to 3.7% per year. Real national income per capita expanded on average by 1.6%Â over the first 1- years of independence, from N$4,520 in 1990 to N44,884 in 1999. Current evidence points at prospects for strong and positive economic performance. In particular, growth is expected in fishing and mining output, tourism and manufacturing. The attractive EPZ zero-tax regime has already attracted significant investments in manufacturing and re-export operations.Â
Prices and Inflation
Over the last ten years, the inflation rate averaged 10%. The last five years of the 1990s saw a reduction with an average of 8.3% per year, with a record low of 6.2% in 1998. Due to external pressure, especially rising oil prices, inflation is expected to rise slightly.
Monetary and Fiscal Growth
Monetary and exchange rate policy in Namibia is influenced by Namibia’s membership of the Common Monetary Area. Under the agreement, the Namibia dollar is pegged on par to the SouthPost too long. Click here to view the full text.