Macroeconomic Forecast Namibia

The SWAPO government plans to continue with a countercyclical fiscal policy, with spending on infrastructure and social sectors set to soar again in FY2010/11. This, combined with tumbling revenues from the South African Customs Union, will ensure that the budget deficit deepens in the near term, reaching 4.0% of GDP by the end of FY2011/12. Given the country's low public debt, our forecast for persistent budget deficits is no cause for alarm.

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