12 Jul 2017 16:30pm
WINDHOEK, 12 JUL (NAMPA) Economic Advisor to the President, Dr John Steytler said Wednesday that Government made the right decision with the budget cuts because it averted an imminent economic heart attack.
The budget cuts were necessary because even though the economy is weak at the moment, it is now in a better position than it was two years ago.
Steytler made these remarks during an Economic Panel Discussion organised by Nedbank in the capital.
The advisor was giving an update on the countrys current economic status, during which he revealed that Namibia is back on the right track so far and that it was saved just in time.
The economist advised that in order to ensure that the situation remains as it is currently, the country should guard that it does not relapse.
Businesses should also drop the habit of solely depending on Government and adopt other sources of funding, he alluded.
Steytler said if Government continues with its fiscal prudence and maintains debt levels, it should be alright.
However, according to him, more still needs to be done to boost the countrys export levels as this is a key factor in enhancing the economy.
According to the Economic Outlook for July 2017 issued by the Bank of Namibia (BoN) recently, Namibias gross domestic product is projected to improve by 0.2 per cent to 2.1 per cent in 2017, before improving to 3.8 per cent in 2018.
Steytler added that small and medium enterprises should also be endowed with both capital and skills to secure the countrys future.
It is important to invest more in skills and education, because the country will not be able to be competitive without the right tools, he emphasised.