Namibia's economy is reported to have recovered in 2023 and will see a strong rebound in mineral production.

This was revealed by the International Monetary Fund at a media briefing on its mission conclusion for Namibia.

The IMF conducted discussions for the 2023 Article IV consultation in the country, which commenced on the 18th of September and ended on the 2nd of October.

IMF Mission Chief for Namibia, Jaroslaw Wieczorek, said that Namibia is on the back of sustainable mining growth and a recovery in tourism, and its GDP grew by 4.6 percent in 2022.

A growth of 3.2 percent in 2023 is expected to bring output back above the pre-pandemic level.

Unemployment remains elevated at 21 percent, mostly affecting youth. Wieczorek stated that for 2024 and the medium term, the growth path is expected to stabilise at just below 3 percent.

Many factors, such as inflation, which rose sharply in 2022 due to high international oil and food prices, have eased in recent months, giving a sigh of relief to Namibians.

Senior economist at the IMF, Daniel Gurara, said the fiscal situation last year was much better than expected in 2023. 

A high fiscal deficit was expected, but mobilisation and expenditure were contained, he says.

The fiscal deficit has narrowed considerably, from 8.6 percent in 2021-22 to 5.3 percent in 2023-2023, as pandemic-related spending pressure eased and measures were taken to contain public wage bill growth and improve the performance of state-owned enterprises.

The IMF further highlighted that the new investment opportunities created by the oil and gas discoveries and the green hydrogen projects in the country are expected to bring in more jobs and boost the Namibian economy for the better.