Namibia recorded positive economic growth in 2022, despite the impact of adverse economic conditions.
This, according to Economist Ruusa Nandago, is largely due to a 22% increase in the mining sector.
Many Namibians experienced the devastating impact of income loss due to numerous economic shocks across the world over the past three years.
Meanwhile, Namibia's mining sector saw the commissioning of the biggest diamond vessel yet built, as well as high commodity prices and export earnings.
The mining sector, which made up about 1.8% of the workforce, Nandago notes, is imperative to the country's GDP.
However, she noted that the sector does not directly contribute to employment, thus doing little to ease economic pressure on most citizens.
Speaking at the Ashburton Economic Summit, Nandago said Namibia also experienced the highest level of inflation since 2017 last year at 6%.
"Our growth is still above trend, at least above our five-year historic average, and that again is due to the mining sector popping up that growth both from a production perspective and exploration activity. And we also expect our inflation to go down as it did in the US, and this is also why we are falling behind what we saw in 2022 because we import most of our inflation. That global inflation trajectory that's coming down will also fall through to Namibia, and we have very few demands for inflation."
Giving an overview of the global economy, Ashburton's fund manager Adam Drewry says the ongoing geo-political conflict between Russia and Ukraine continues to worsen inflation in the Western world, which is only expected to normalize in some countries in 2025.
Additionally, Drewry noted with concern issues impacting South Africa's inflation and economic growth, such as load shedding, which continue to affect different sectors.
South Africa's economy contracted by 1.3% during the fourth quarter due to ongoing power cuts.
"Load shedding has affected key industries in SA, especially those that consume a lot of power, like mining or manufacturing, and retail as well, and what we've seen is business going down and capital going down. The economy is starting to feel the pressure."