Namibia’s trade deficit down to N$5b in January and February

• By Veronica Amaral

Namibia’s merchandise trade deficit shrank to N$5 billion in the first two months of 2024, 19.2 per cent less than in the corresponding period in 2023.

This is according to the Bank of Namibia Monetary Policy statement released Wednesday.

The stock of overseas reserves was N$54.3 billion, less than the revised N$55.8 billion on January 31, 2024. Government overseas payments and net commercial bank withdrawals were blamed for the decline.

The international reserves stock is expected to cover 3.8 months of imports. This is still enough to meet the nation’s international financial obligations and maintain the currency peg between the Namibian Dollar and the South African Rand.

The devaluation of the exchange rate and more significant export volumes, especially for gold and uranium, were the primary drivers of the improved export earnings. In the meantime, decreased imports of mineral fuels were the primary cause of the drop in import payments.

Furthermore, the real Gross Domestic Product (GDP) increased by 4.2 per cent in 2023 compared to 5.3 per cent in 2022, a slower but steady development rate. 

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