10 Apr 2019 17:50pm
WINDHOEK, 10 APR (NAMPA) - Annual private sector credit extension (PSCE) growth and inflation increased during the first two months of 2019.
The PSCE stood at 6,3 per cent in 2019 compared to 5,7 per cent recorded in 2018.
Bank of Namibia (BoN) Deputy Governor Ebson Uanguta said during the second Monetary Policy announcement for 2019 here on Wednesday the rise in PSCE emanated from an increase in business credit of 5,9 per cent during the first two months of 2019, from 3,5 per cent over the same period last year.
This was mainly due to the uptake of short-term credit facilities by businesses, Uanguta said.
Meanwhile, household credit growth slowed from 7,3 per cent during the first two months of 2018 to 6,5 per cent over the same period this year.
Annual average inflation increased to 4,6 per cent during the first two months of 2019 from 3,6 per cent over the corresponding period in 2018.
The increase was attributed to the rise in food, non-alcoholic beverages and transport.
He further said the domestic economy remained weak in January and February 2019.
Uanguta said the slowdown in activity was reflected in the mining, agriculture and construction sectors.
However, the domestic economy was projected to record a marginally positive growth rate in 2019.
Meanwhile, Namibias foreign reserve stock rose to N.dollars 32.6 billion as at 31 March 2019, from N.dollars 30.7 billion on 31 January 2019 - an increase of N.dollars 1.9 billion.
This amount of international reserves is estimated to cover 4.3 months of imports of goods and services. At this level, the reserves are sufficient to protect the peg of the Namibian Dollar to the Rand, as well as meeting the countrys international financial obligations, Uanguta said.