Country Report Namibia March 2011

Outlook for 2011-12: Policy trends

The Namibian economy, particularly the mining sector, recovered strongly in 2010, boosted by the resumption of global demand for commodities and higher prices. As a consequence, the stimulus measures pursued by the government since 2009-lower interest rates and increased government spending-will begin to be reversed during the outlook period, when economic recovery is judged to be secure. Increasing uranium production will be the main generator of growth. Economic policy will be broadly unchanged under the current national development plan, although its average annual GDP growth target of 5% is unlikely to be achieved. Other goals include increased employment (the rate of unemployment was 51% in 2009); faster land redistribution; and reduced poverty and income inequality (Namibia is judged to have the most unequal distribution of wealth in the world: it is classed as a middle-income country, but around one-half of the population lives on less than US$1.25 a day).

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