20 Dec 2013 17:10pm
WINDHOEK, 20 DEC (NAMPA) - The Bank of Namibia (BoN)'s Deputy Governor, Ebson Uanguta says the Namibian economy showed some signs of improvement in various economic sectors during the third quarter of 2013.
A media statement issued by the BoN on Thursday on domestic and international economic and financial developments during the third quarter of 2013 (July to September) said available indicators showed improvements during the third quarter compared to the corresponding period in 2012.
Uanguta said within the primary industry, mineral production continued to show sustained momentum, while significant increases were observed in the value of livestock marketed due to the prevailing drought.
In the secondary industry, real value for building plans approved rose, suggesting increased property developments going forward, although the real value of buildings completed declined, he said.
The construction sector is projected to register a stronger growth in 2013, supported by private sector investments in the private sector.
The manufacturing sector slowed down during the quarter under review, mainly due to decreased output of mineral processing.
The tertiary industry performed positively as reflected in brisk growth of wholesale and retail trade sales, as well as in cargo volumes in the transport sector, while activities in the tourism sector remained stagnant, he said.
Uanguta further said monetary and credit aggregates recorded strong growth at the end of the third quarter of 2013, in line with the low interest rates environment and higher liquidity levels of the banking sector.
He noted that growth in broad money supply increased at the end of the third quarter a result of the accelerated growth in domestic claims, but recorded a slowdown on a quarterly basis.
Private sector credit extension slowed at the end of the third quarter to 13,3 per cent as a result of weakened demand from the household and business sector.
Namibia's headline inflation slowed to 5.8 per cent during the third quarter of 2013, from 6 per cent in the previous quarter, he said.
The slowdown was due to lower inflation for food, non-alcoholic beverages and housing, while inflation for transport, alcoholic beverages and tobacco use increased.
Uanguta further noted that Central Government's outstanding nominal debt and loan guarantees increased on an annual basis at the end of the second quarter of 2013 and 2014, but remained sustainable and within the target levels.
The loan guarantees were driven predominantly by domestic loan guarantees.
The total debt and loan guarantees remained well below the Government's debt ceilings of 35 per cent, posing limited risk to the fiscal sustainability, he noted.
Uanguta further stated that Namibia's external competitiveness continued to improve during the third quarter of 2013, as a result of the depreciation of the Real Effective Exchange Rate (REER).
He said the REER could potentially improve Namibia's external price competitiveness in international markets.