BoN reviews economic activities for December 2017

01 Feb 2018 15:50pm
WINDHOEK, 01 FEB (NAMPA) - Namibia’s annual inflation rate stood at 5,2 per cent in December 2017, maintaining the same growth rate since October 2017, the Bank of Namibia (BoN) has said.
The BoN, stated this in its latest ‘Money and Banking Statistics’ publication, which was made available to the media on Thursday.
The annual inflation rate for some of the major categories such as housing, water, electricity, gas and other fuels, transport and education rose during the period under review, while the rest of the categories slowed, the BoN reported.
The BoN also reported that the overall liquidity position of commercial banks decreased during December 2017.
The overall liquidity position of the banking industry decreased by N.dollars 3.2 million at the end of November 2017 to N.dollars 3.1 billion during December 2017.
The decrease was as a result of the periodic corporate tax payments to the state at the end of each year.
The BoN however noted that the annual growth in broad money supply (M2) rose at the end of December 2017.
The 12-month growth in M2 rose to 9,5 per cent at the end of December 2017, from 9,2 per cent in November 2017.
The annual increase was partly driven by the improved growth in domestic claims, specifically the higher growth in total credit extended to the private sector.
Growth in total private sector credit extension (PSCE) also edged slightly higher at the end of December 2017.
According to the BoN publication, the annual growth in PSCE edged higher to 5,1 per cent at the end of December 2017, increasing by 0.4 per cent compared to the previous month when it stood at 4,7 per cent.
The improved growth in PSCE was mainly reflected in the higher growth observed in credit extended to the business sector, specifically in the categories overdraft credit and other loans and advances which rose at the end of December 2017.
On the foreign reserve front, the stock of foreign reserves rose during the period under review.
The level of international reserves stood at N.dollars 29.7 billion at the end of December 2017, from a lower level of N.dollars 28.5 billion at the end of November 2017.
The increase in the level of reserves was mainly due to Southern Africa Customs Union (SACU) inflows and the second disbursement of African Development Bank loan during the review period.