Bank of Namibia projects average 3.0 pct for overall inflation in 2021

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WINDHOEK, Feb. 17 (Xinhua) — Bank of Namibia, the country’s central bank, has projected overall inflation to average around 3.0 percent in 2021, said Governor Johannes Gawaxab in the country’s first Monetary Policy Announcement of the year Wednesday.

The central bank also held its repo rate untouched at 3.75 percent, said Gawaxab, noting that the move is in support of the domestic economy and is appropriate as it maintains the one-to-one link between the Namibia dollar and the South African rand.

According to the governor, the domestic economic activity declined in 2020 relative to 2019.

“Contractions were observed in key sectors such as tourism, wholesale and retail trade, mining, manufacturing, construction, as well as transport and storage. The contraction was mainly due to the devastating effects of the COVID-19 pandemic,” he said.

The domestic economy is estimated to have contracted by 7.3 percent for 2020, before returning to the expected moderate recovery of 2.6 percent in 2021, Gawaxab added. Enditem

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