...Source: BMI/BoN growth at -.- in ---- following -.- in ----, we anticipate that the growth of the middle class will be gradual, given real GDP growth rates of under -.- in the next few years. ...This is due to limited wage increases on the back of falling mineral revenues. Government Spending: The Namibian government, through the Medium Term Expenditure Framework, is planning expenditure on social investment focusing on education and employment policies as well as infrastructure. This will increase financial pressure and result in a higher level of public sector debt which is expected to reach levels of -- of GDP in the ----/-- finan- cial year, according to the Department of Finance. ...Net Exports: Namibia s net exports position will remain in the red in the next few years since the commodity price slump will weigh on exports. Diamond and copper exports have seen the - Business Monitor International Ltd www.bmiresearch.com
...Policy Statement in November ----, stating that it is necessary in future for fiscal transparency, accountability and an open budget formulation process. There are critical matters that need to be addressed for the next Medium-Term Expenditure Frame- work (MTEF) including structural changes in the eradication of poverty, inequality, infrastructure gaps and unemployment, which stands at --.- . Furthermore, the twin deficit consisting of the government budget and the current account will need more support. The Ministry of Finance (MoF) will implement spending cuts of -- on the indicative allocations to non-core and low prior- ity recurrent expenditure items which are expected to generate NAD-.--bn for FY----/--, at least NAD-.--bn for FY----/-- and around NAD-.--bn for FY----/--. The MoF mentioned that in terms of expenditure for FY----/-- and the MTEF, the key spending priorities are to fund develop- ment interventions in priority sectors � according to the Fourth National Development Plan � and protect spending allocations in the social sectors. ...Government will also develop the country s energy supply through solar, wind and diesel power generation with private sector investment, while further strengthening Nampower s balance sheet. Lastly, the government will maintain priority spending on education and health sectors as well as increase the Old Age Pension to
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