Economy Takes Rocky Ride Through First Quarter

4 July 2011

NAMIBIA’S international investment position maintained a net surplus position at the end of the first quarter of 2011, with residents’ stock of foreign assets exceeding their liabilities, Paul Hartmann, deputy governor of the Bank of Namibia (BoN), has said.

The major contributor to the surplus position remained portfolio investment abroad, while the category direct investment in Namibia continued to be the country’s most significant liability.

Speaking during the launch of the BoN Quarterly Bulletin on Thursday, Hartmann said the deficit on Namibia’s balance of payments narrowed by 17,8 per cent in the first quarter of the year, which covers the period January to March.

“This was a reflection of an improvement on the current account, coupled with reduced capital outflows in portfolio investment on the capital and financial account,” he said.

On average, he said, mineral exports decreased during the review period, contrary to the recovering global demand in the commodity market.

“The weaker performance of the mining sector is mainly ascribed to operational challenges caused by heavy rainfall that disrupted mining operations,” he said.

The above average rainfall recorded in most parts of the country was the major contributing factor of declined activities in the agricultural sector and slow mining production during the first quarter of the year, he said.

“The performance of the wholesale and retail trade, transport and tourism sectors of the tertiary industry is disappointing,” Hartmann said. The first quarter covers January to March.

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