12 Jun 2019 15:20pm
WINDHOEK, 12 JUN (NAMPA) - Private sector credit extension (PSCE) growth rose marginally, while inflation remained stable during the first four months of 2019.
Bank of Namibia (BoN) Governor Iipumbu Shiimi said this during the Monetary Policy announcement for 2019 here on Wednesday.
The average annual growth rate of PSCE stood at 6,4 per cent in the four six months of 2019, higher than the 6,1 per cent recorded over the same period in 2018.
Shiimi attributed the growth in PSCE to utilisation of short-term credit facilities by businesses, while growth in credit extended to individuals declined over the same period.
The annual average inflation increased to 4,5 per cent during the first four months of 2019 from 3,6 per cent during the same period in 2018.
Month-to-month inflation rose slightly to 4,5 per cent for both March and April 2019 - an increase from 4,4 per cent recorded in February 2019 - and is expected to average around 4,5 per cent for the rest of this year.
Domestic economic activity reflected a slowdown mainly in the mining, agriculture, construction, wholesale and retail trade sectors, while the transport and communication sectors recorded growth.
Shiimi attributed the growth in the transport sector to cargo volumes which increased as a result of mining exports which rose by 24,2 per cent.
Namibia's foreign reserve stock stood at N.dollars 34.1 billion as at 31 May 2019, increasing from N.dollars 32.6 billion in April 2019.
The increase in the international reserve stock was attributed to payments from Southern African Customs Union (SACU) receipts, which the country receives on a quarterly basis.
SACU receipts payment for the first quarter, which ended in April 2019, amounted to N.dollars 4.7 billion compared to N.dollars 4.3 billion in the previous quarter.
Namibia expects to receive N.dollars 18 billion from SACU receipts this year.
This amount of international reserves is estimated to cover 5.6 months of imports of goods and services. At this level, the reserves are sufficient to protect the peg of the Namibian Dollar to the South African Rand and meet the country's international financial obligations.'