Namibia economy to grow 4,7% in '08
Namibia's economy was expected to accelerate to 4,7 percent in 2008 on strong commodity prices, but inflation was likely to quicken due to rising food and fuel prices, the country's finance minister said on Wednesday.
Saara Kuugongelwa-Amadhila said the southern African economy was expected to have grown by 4 percent last year, but growth should be bolstered over the next three years by high metals prices.
"Growth is anticipated to rise to 4,7 percent in 2008 on the back of favourable commodity prices and increased uranium production," she said in a budget speech.
Growth should average about 5,2 percent until 2011.
Kuugongelwa-Amadhila said it was expected that four new uranium mines would come on stream in the next three years, to add to the existing two mines in operation.
The desert nation relies heavily on mining, which accounts for about half of its export earning, led by diamonds. It is also the world's fifth largest producer of uranium.
The finance minister also said inflation was likely to accelerate to 7,0 percent this year from a 6,8 percent average in 2007, mainly due rising food and fuel prices.
Food and fuel prices have risen internationally and has pushed up inflation in neighbouring South Africa, to which the Namibian economy is closely tied through its rand peg and joint membership of the Southern African Customs Union.
Kuugongelwa-Amadhila added Namibia's budget surplus was seen shrinking to 3,3 percent of gross domestic product from 4,8 percent in 2007.
