15 Aug 2018 16:10pm
WINDHOEK, 15 AUG (NAMPA) Inflation and private sector credit extension (PSCE) growth declined while the domestic economy improved during the first six months of 2018.
The average annual growth rate of PSCE stood at 5,6 per cent in the first six months of 2018, lower than 7,7 per cent recorded over the same period in 2017.
Bank of Namibia (BoN) Governor Ipumbu Shiimi said this during the fourth Monetary Policy announcement for 2018 here on Wednesday.
Shiimi attributed the slow growth in PSCE to reduced demand for credit by both the household and corporate sectors, especially in the form of mortgage, overdraft and instalment credit.
The annual inflation fell to 3,7 per cent during the first six months of 2018 from seven per cent during the same period in 2017.
The lower inflation rate was mainly due to lower price increases in the food and non-alcoholic beverages as well as housing categories, he said.
Inflation for the transport category, however, rose on average during the same period, as a result of higher fuel prices.
Month-to-month inflation rose slightly to four per cent during June 2018, from 3,8 per cent in May 2018 and is expected to average around 4,1 per cent for the rest of this year.
Activities in the mining, transport and communication sectors contributed to the improved domestic economy during the first six months of the year and is projected to grow by 0,6 per cent compared to a negative growth registered in 2017.
He said the wholesale and retail trade sector continued to decline at a slower pace compared to the corresponding period in 2017.