Namibia’s current account deteriorating

Increase in imports, weak export performance in Q3

14 January 2021 | Ekonomie
PHILLEPUS UUSIKU

A recovery in imports following the easing of local and global Covid-19 restrictions, as well as a bounce-back in oil prices together with a broadly weak export performance, erased part of the significant current account surplus print in the second quarter of 2020.

Looking at merchandise trade, the goods balance recorded a deficit in the third quarter of 2020, slightly narrower than the deficit during the third quarter of 2019, according to Eloise du Plessis, head of research at PSG Namibia.

This was mainly due to the import bill declining more than the decrease in export receipts during this period. The value of merchandise imports declined by 24% year-on-year reflecting lower demand for all import categories, she said.

The sharpest declines were recorded for fuels -40%, vehicles, aircraft & vessels -33%, and consumer goods -19% year-on-year.

Furthermore, diamonds declined by - 61%, manufactured goods -38%, and food and live animals -28% year-on-year fell the most. On the bright side, the value of gold export earnings rose on an annual basis on the back of a higher gold price, she pointed out.

Markets

Namibia continues to source most of its goods imports from South Africa 62.9%, followed by China 6.9% and the eurozone 6.1%. The country mainly imports fuel and consumer goods from South Africa and machinery from China.

Namibia’s leading export partners were China 30.5%, South Africa 26.5%, and the eurozone 17.5%. The share of exports to China nearly tripled over the past year, reflecting an increase in exports of uranium and zinc concentrate. Exports to South Africa were mainly gold and live animals, she pointed out.

The possibility of prolonged travel restrictions amid new waves of Covid-19 infections despite the roll-out of vaccines, which would weigh on travel and transport services, as well as the possibility of continued weak demand for luxury goods are major downside risks to the current account balance in the near term.

Furthermore, the expected loss in revenues from SACU transfers, diamond exports, and services would also give rise to further debt financing by the government, which could reduce the country’s credit worthiness, she said. - [email protected]

Soortgelyk

 

Oliesoektog: D-dag vir besware om die draai

9 ure gelede | Omgewing

Ronelle Rademeyer – Die olie- en gasmaatskappy Reconnaissance Energy Namibia (ReconAfrica) moet teen Vrydag 5 Februarie sy aansoek vir ’n omgewingsklaringsertifikaat (ECC) by die ministerie...

Inhaal deel van leerplan

9 ure gelede | Onderwys

Henriette Lamprecht – Die nasionale leerplan is tot 70% gerasionaliseer en ’n herstelperiode is ingebou wat vandeesmaand met die opening van skole vir die nuwe...

Haihambo terug in hof

9 ure gelede | Howe

Kristien Kruger – Die moordbeskuldige mnr. Philipus Hafeni Haihambo (55) se verhoor het hierdie week in die hoërhof in Windhoek hervat.Die verhoor was verlede jaar...

Weer vir 20 Januarie 2021

9 ure gelede | Weer

WEERWAAK: Swaar reënneerslae met kitsvloede sal waarskynlik by Tsumkwe en die streke van die Kavango, Zambezi, Oshikoto, Ohangwena en Oshana voorkom en na die Omusati-...

Die Neckartaldam se 'beker loop oor'

9 ure gelede | Weer

Elvira Hattingh – Terwyl 'n weerkenner meen swaar reën is moontlik in die tweede deel van Februarie en Maart vir Namibië op pad, het Neckartal...

Vuilspel in Shoprite/Nafau-staking beweer

9 ure gelede | Arbeid

Augetto Graig – Beskuldigings van vuilspel aan beide kante sal volgende Dinsdag in die hof draai, wanneer prokureurs vir Shoprite en die Namibiese Unie...

Lesersfoto's 20 Januarie 2021

9 ure gelede | Lesersfoto's

Sterkerig: Elize het die foto in haar tuin geneem. Water: Johané Boshoff het die foto by Aussenkehr geneem.Groete: “Ek het die sonsondergang buite Tsumeb geneem....

3 sterftes, 242 nuwe gevalle

17 ure gelede | Gesondheid

Drie nuwe Covid-19-verwante sterftes, een elk van Eenhana, Oshakati en Oshikuku, het die totaal vir die land op 296 te staan gebring. Vandag is 242...

Neckartaldam: Tot oorlopens toe vol

1 dag gelede | Weer

Elvira Hattingh – Teen saktyd gisteraand is verwag dat die Neckartaldam vanaf middernag sou begin oorloop en tot 1 100 m³ water per sekonde sou...