Namibia’s current account deteriorating

15 January 2021 | Economics

Windhoek ∙ [email protected]



A recovery in imports following the easing of local and global Covid-19 restrictions, as well as a bounce-back in oil prices together with a broadly weak export performance, erased part of the significant current account surplus print in the second quarter of 2020.

Looking at merchandise trade, the goods balance recorded a deficit in the third quarter of 2020, slightly narrower than the deficit during the third quarter of 2019, according to Eloise du Plessis, head of research at PSG Namibia.

This was mainly due to the import bill declining more than the decrease in export receipts during this period. The value of merchandise imports declined by 24% year-on-year reflecting lower demand for all import categories, she said.

The sharpest declines were recorded for fuels -40%, vehicles, aircraft & vessels -33%, and consumer goods -19% year-on-year.

Furthermore, diamonds declined by - 61%, manufactured goods -38%, and food and live animals -28% year-on-year fell the most. On the bright side, the value of gold export earnings rose on an annual basis on the back of a higher gold price, she pointed out.

Markets

Namibia continues to source most of its goods imports from South Africa 62.9%, followed by China 6.9% and the eurozone 6.1%. The country mainly imports fuel and consumer goods from South Africa and machinery from China.

Namibia’s leading export partners were China 30.5%, South Africa 26.5%, and the eurozone 17.5%. The share of exports to China nearly tripled over the past year, reflecting an increase in exports of uranium and zinc concentrate. Exports to South Africa were mainly gold and live animals, she pointed out.

The possibility of prolonged travel restrictions amid new waves of Covid-19 infections despite the roll-out of vaccines, which would weigh on travel and transport services, as well as the possibility of continued weak demand for luxury goods are major downside risks to the current account balance in the near term.

Furthermore, the expected loss in revenues from SACU transfers, diamond exports, and services would also give rise to further debt financing by the government, which could reduce the country’s credit worthiness, she said.

Similar News

 

Arandis Council acquires stake in charcoal company

1 week ago - 13 February 2021 | Economics

Arandis The Arandis Town Council recently acquired a 10 percent stake in Unoo Investments CC, a charcoal processing plant established in January 2020.Unoo Investments...

New strategy for economic trajectory

2 weeks ago - 09 February 2021 | Economics

As Namibia advances towards becoming an important transit route for cargo into southern Africa, the country continues to develop and transform itself into a logistics...

Thousands resort to bribery

2 weeks ago - 06 February 2021 | Economics

Windhoek ∙ [email protected] Namibia is among the top five countries in Africa where citizens believe corruption is on the increase.74% of Namibians surveyed in...

Reshaping realities

4 months ago - 25 October 2020 | Economics

The Covid-19 pandemic has undoubtedly eroded the overall improvement in risk-reward scores seen across Africa in recent years, but this should not deter investors. Africa’s...

Covid’s real impact on the Namibian economy

4 months ago - 23 October 2020 | Economics

The Covid-19 pandemic is a crisis like no other, and there was a substantial degree of uncertainty around its impact on lives and livelihoods. “Governments...

Trade by sea surges in past quarter

2 years ago - 24 December 2018 | Economics

Jo-Maré Duddy - The key role assigned to Walvis Bay in Namibia’s aspirations to become a logistics hub in the Southern African region is evident...

Property prices: Swakop, Walvis under pressure

2 years ago - 24 December 2018 | Economics

Jo-Mare Duddy - Uncertainties in the uranium, fishing and tourism sectors are pushing average house prices at the coast down. Releasing the FNB House Price...

Tweya takes on saboteurs

2 years ago - 05 November 2018 | Economics

Leandrea Louw Minister of industrialisation, trade and SME development Tjekero Tweya has refuted claims that he travelled overseas with president Hage Geingob...

A million Namibians are broke

2 years ago - 20 August 2018 | Economics

Jo-Maré DuddyFor Agnes B*, like the rest of the nearly one million Namibians now part of a new official statistic, it is tough to keep...

Millions roll in for Windhoek

2 years ago - 18 August 2018 | Economics

Ronelle Rademeyer Apart from the prestige of hosting the Southern African Development Community (SADC) summit in Windhoek, the capital will receive a much-needed cash...

Latest News

Police search for Narraville resident

3 hours ago | Crime

Walvis Bay Police are searching for 29-year-old Narraville resident, Jolanda Ndjandereka. Ndjandereka allegedly told her children that she was going to withdraw...

Nasionale hengelkompetisie om die draai

4 hours ago | Sports

Kus • [email protected] Met die nasionale hengelkampioenskap om die draai, sê die toernooi se hoodbeampte, Danie du Toit, dat Covid-19-maatreëls ’n invloed het...

Bail denied for rape...

19 hours ago | Justice

Walvis Bay • [email protected] The bail application of a 67-year-old man accused of raping his granddaughter (13) failed in the Walvis Bay magistrate’s...

Pay up first, council tells...

19 hours ago | Health

Swakopmund • [email protected] Given the second wave of the coronavirus that hit Namibia, the Ministry of Health asked for additional accommodation in Swakopmund...

Top Cheri chosen as EduCare...

20 hours ago | Art and Entertainment

Walvis Bay • [email protected] Award-winning artist Monica “Top Cheri” Pinias recently announced on social media that she has been chosen as the official...

J Squared to exhibit photos

21 hours ago | Art and Entertainment

Swakopmund • [email protected] exhibition by local photographers Johann Nieuwoudt and Johan van Niekerk, collectively known as J Squared, takes place at Ankerplatz on Saturday.With over...

Namibia working towards acquiring vaccine...

1 day - 25 February 2021 | Health

Walvis Bay The minister of health and social services, Dr Kalumbi Shangula, said that Namibia is hard at work to ensure that...

Council will not tolerate land...

1 day - 25 February 2021 | Infrastructure

Walvis Bay • [email protected] Walvis Bay mayor Trevino Forbes made it clear that council will not tolerate any land grab incidents.He made...

Covid-19 measures slightly adjusted

1 day - 24 February 2021 | Local News

Walvis Bay Namibian president Dr Hage Geingob announced minimal changes to the current Covid-19 measures on Wednesday morning. He adjusted the curfew...

Load More