Namibia records N$12.4 billion import bill

High prices of commodities for which Namibia is a net importer could weigh on the country’s economic growth forecast for 2023.The Bank of Namibia identified the high costs of key import items as one of the key risks to its 3% economic growth projection this year.As at 31st March 2023, the stock of international reserves increased to N$48.5 billion, from N$47.4 billion in February 2023. At this level, the stock of international reserves is estimated to cover 5.1 months of imports, the central bank said at the last monetary policy announcement.According to the Namibia Statistics Agency (NSA), the value of imports increased to N$12.4 billion in March 2023, compared to N$8.5 billion and N$9.4 billion in February 2023 and March 2022, respectively. Inflation in the first quarter of 2023 averaged 7.1% compared to 4.5% during the same period last year.The import bill was mainly driven by petroleum oils which account for 17.4% of total imports, followed by copper ores and concentrates (12.4%), motor vehicles for the transportation of goods (5%), diamonds and civil engineering and contractor's equipment 3.1% each. OilPetroleum oils were mostly sourced from the United Arab Emirates (UAE), Malaysia and Singapore.Fin24 recently reported that major oil powers led by Saudi Arabia announced a surprise production cut of more than one million barrels per day, calling it a "precautionary" move aimed at stabilising the market.The reductions, on top of a Russian decision to extend a cut of 500 000 barrels per day, and despite US calls to increase production, risk stoking inflation and pressure to raise interest rates.Cuts by Saudi Arabia, Iraq, UAE, Kuwait, Algeria and Oman from May to the end of the year will top one million barrels per day - the biggest reduction since the OPEC cartel slashed two million barrels per day in October.Russia, a leading member of the OPEC cartel, said it was also extending an existing cut of 500 000 bpd to the end of this year, describing it as "a responsible and preventive action".Overall, Namibia’s trade deficit worsened by N$1.8 billion in March to N$2.2 billion, compared to N$453 million recorded in February. Export earnings increased by 26.3% from N$8.1 billion recorded in February to N$10.2 billion in March.-phillep@nmh.com.na

Namibia records N$12.4 billion import bill

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