{ "title": "IMF Staff Completes 2019 Article IV Mission to Namibia", "publication": "IMF News, June 5, 2019", "sourceUrl": "https://www.imf.org/en/news/articles/2019/06/04/pr19200-namibia-imf-staff-completes-2019-article-iv-mission-to-namibia", "canonical": "https://www.imf.org/en/news/articles/2019/06/04/pr19200-namibia-imf-staff-completes-2019-article-iv-mission-to-namibia", "overlayPath": "/en/news/articles/2019/06/04/pr19200-namibia-imf-staff-completes-2019-article-iv-mission-to-namibia/index.md", "summary": "Press Release No. 19/200 dated June 5, 2019.", "publishDate": "2019-06-05", "sections": [ { "heading": "Mission and context", "content": "- Press Release No. 19/200 dated June 5, 2019.\n- An IMF staff team led by Mr. Geremia Palomba, IMF Mission Chief for Namibia, visited Windhoek during May 22-June 4, 2019 to conduct the 2019 Article IV Consultation with Namibia.\n- End-of-Mission press releases convey preliminary findings; the views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board." }, { "heading": "Economic outlook and growth projections", "content": "- The economy is undergoing a rebalancing process and has been contracting.\n- In 2018, real GDP declined for a second consecutive year.\n- IMF staff expect the economy will recover only gradually:\n - Growth is projected to remain mildly negative in 2019.\n - Growth is expected to turn positive in 2020.\n - Growth is expected to gradually converge to a long-term rate of about 3 percent.\n- Factors weighing on near-term recovery:\n - A poor rain season.\n - Reduced diamond production.\n- Downside risks:\n - Lower than expected Southern African Customs Union (SACU) revenue.\n - Fiscal slippages that would undermine the government’s efforts to stabilize public debt dynamics." }, { "heading": "Fiscal position and public debt stabilization", "content": "- Key challenge: identify specific policies to fully deliver the authorities’ fiscal consolidation plans to stabilize public debt dynamics.\n- The authorities’ consolidation plans strike a right balance between stabilizing public debt and supporting the economy, but several actions are needed to deliver this outcome.\n- Immediate priorities:\n - Immediate action is needed to contain the FY19/20 fiscal deficit within the budget limits as spending pressures are rising.\n - Policies to deliver the fiscal adjustment planned for the next two years also need to be fully identified.\n- Policy focus areas:\n - Rationalizing large spending items, particularly wage costs and transfers to public entities.\n - Combining expenditure and revenue measures that support long-term growth, while protecting and improving social assistance programs.\n- Fiscal governance and risk management:\n - Rationalizing public entities, strengthening revenue administration, and improving budget and expenditures controls is critical to delivering adjustment plans.\n - Avoiding excessive risk-taking from off-budget operations will strengthen the credibility of the adjustment and reduce fiscal risk.\n - The mission welcomes the authorities’ intention to develop restructuring plans for key loss-making public enterprises." }, { "heading": "Structural reforms to boost growth and competitiveness", "content": "- Structural reforms are needed to strengthen productivity and competitiveness, lift business confidence, and boost the long-term growth potential of the economy.\n- Recommended reform priorities:\n - Reduce policy uncertainty.\n - Streamline business regulations.\n - Remove obstacles that contribute to high electricity and transportation costs, including reforming public enterprises operating in these sectors.\n - Establish a well-structured wage policy for the public sector to better align wage dynamics and productivity.\n - Over time, remove obstacles to exports, address the shortage of well-educated and skilled workers, and foster the adoption of new technologies." }, { "heading": "Financial sector soundness and reforms", "content": "- Despite the economic slowdown, the financial sector remains sound.\n- Authorities are taking steps to curb possible risks arising from structural vulnerabilities in the sector and advance key reforms:\n - Strengthen banks’ asset classification.\n - Tighten concentration risk regulations.\n - Improve the macroprudential policy framework.\n - Upgrade the non-bank regulatory and supervisory frameworks and introduce a resolution regime.\n- These steps will help manage macro-financial risks and address structural vulnerabilities in the sector." }, { "heading": "Closing", "content": "- The mission thanked the authorities for their hospitality and productive discussions.\n\nIMF Communications Department\n\n---\n\n\n References\n\n- Namibia and the IMF\n- IMF Policy Advice -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2019/06/04/pr19200-namibia-imf-staff-completes-2019-article-iv-mission-to-namibia" } ], "bullets": [ "[Markdown version](/en/news/articles/2019/06/04/pr19200-namibia-imf-staff-completes-2019-article-iv-mission-to-namibia/index.md)", "[Structured JSON version](/en/news/articles/2019/06/04/pr19200-namibia-imf-staff-completes-2019-article-iv-mission-to-namibia/index.json)", "[Bundle manifest](/en/news/articles/2019/06/04/pr19200-namibia-imf-staff-completes-2019-article-iv-mission-to-namibia/bundle-manifest.json)", "Published: June 5, 2019", "Press Release No. 19/200 dated June 5, 2019.", "An IMF staff team led by Mr. Geremia Palomba, IMF Mission Chief for Namibia, visited Windhoek during May 22-June 4, 2019 to conduct the 2019 Article IV Consultation with Namibia.", "End-of-Mission press releases convey preliminary findings; the views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board.", "The economy is undergoing a rebalancing process and has been contracting.", "In 2018, real GDP declined for a second consecutive year.", "IMF staff expect the economy will recover only gradually:", "Factors weighing on near-term recovery:", "Downside risks:", "Key challenge: identify specific policies to fully deliver the authorities’ fiscal consolidation plans to stabilize public debt dynamics.", "The authorities’ consolidation plans strike a right balance between stabilizing public debt and supporting the economy, but several actions are needed to deliver this outcome.", "Immediate priorities:", "Policy focus areas:", "Fiscal governance and risk management:", "Structural reforms are needed to strengthen productivity and competitiveness, lift business confidence, and boost the long-term growth potential of the economy.", "Recommended reform priorities:", "Despite the economic slowdown, the financial sector remains sound.", "Authorities are taking steps to curb possible risks arising from structural vulnerabilities in the sector and advance key reforms:", "These steps will help manage macro-financial risks and address structural vulnerabilities in the sector.", "The mission thanked the authorities for their hospitality and productive discussions.", "[Namibia and the IMF](http://www.imf.org/external/country/NAM/index.htm)", "[IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2019/06/04/pr19200-namibia-imf-staff-completes-2019-article-iv-mission-to-namibia/index.md", "json": "/en/news/articles/2019/06/04/pr19200-namibia-imf-staff-completes-2019-article-iv-mission-to-namibia/index.json", "bundleManifest": "/en/news/articles/2019/06/04/pr19200-namibia-imf-staff-completes-2019-article-iv-mission-to-namibia/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T22:49:33.316Z" }