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Namibia reduces 2024 development projection on diamond downturn, dry spell

Namibia has reduced its financial growth projection for this year, Finance Minister Iipumbu Shiimi said on Wednesday, mentioning a depression in need for diamonds and a severe drought.

Its economy is anticipated to grow 3.6% this year, compared to a February projection for 4.0% development, Shiimi informed parliament in a. mid-year budget review.

Arid Namibia is among a handful of southern African. countries to have suffered the worst dry spell in the region in. years.

The modifications stem primarily from anticipated lower output. from the mining and farming sectors which have actually been. negatively affected by low international demand for diamonds as well as. the ongoing dry spell, Shiimi stated.

Namibia's general deficit spending is still seen at 3.2% of. gdp in the fiscal year that goes to the end. of March 2025, the same projection given up February's budget plan.

Shiimi stated weak international need for commodities remained an. crucial near-term threat to the growth outlook.

He stated it was imperative for drought-prone Namibia to. buy climate-resilient facilities jobs and. implement climate modification mitigation and adjustment policies.

(source: Reuters)