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• We at Fitch Solutions expect Namibian real GDP to shrink by 6.2% in 2020.
• Q220 will mark the lowest point of growth, since the bulk of the nine-week full national lockdown occurred in April-May.
• That said, weak domestic and global demand, and limited room for fiscal stimulus, will keep Namibian economic activity weak in H220.
• We

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• New vehicle sales in Namibia will contract sharply in 2020 as the implementation of a lockdown to stem the Covid-19 spread in the country and the subsequent economic fallout will result in much weaker demand for vehicles.
• Demand for new vehicles will somewhat recover in H220 driven by lower interest rates, resulting in a significant

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• Namibia continues to recover quickly from the impacts of the Covid-19 pandemic.
• Young and rural population demographics may alleviate some impact.
• The government is implementing fiscal measures to stimulate the economy.

Namibia will be the first country in southern Africa to open its borders to international tourists after the

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• We do not foresee the 600MW Baynes hydropower project coming online within our forecast period to 2029, despite the Namibian and Angolan governments signing bilateral agreements for its development in 2020.
• Due to the history of delays and false starts on the project, we await evidence of tangible progress on the project before

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• At Fitch Solutions, we expect that declining diamond and uranium exports and rising imports of consumer goods will weigh on Namibia’s trade balance in 2020.
• That said, muted capital goods imports will offer some support to the country’s external accounts.
• We forecast the current account deficit to widen from an expected 1.8% of GDP

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• Total vehicle sales will improve in Namibia in 2020 due to favorable low base effects following five years of contracting sales.
• An improving economic outlook will instill confidence in consumers and businesses to resume delayed vehicle purchases.

We believe Namibian total vehicle sales will post a modest recovery in 2020

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• At Fitch Solutions, we forecast that Namibia’s current account deficit will narrow from a revised 2.4% of GDP in 2018 to 1.7% in 2019 due to falling imports.
• That said, we expect the deficit to widen slightly to 1.8% in 2020 and 2.1% in 2021 as imports rebound and diamond exports remain subdued.
• While wider deficits and a rising

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• ExxonMobil is expanding its footprint in Namibia with the acquisition of new exploration licenses, adding approximately seven million net acres in four deepwater blocks.
• The agreement represents a step further towards the US oil major consolidating its footprint in deepwater African acreage.
• Renewed interest from the likes of