Economy still battling headwinds- IJG

The IJG Business Climate Monitor reversed the upward trend in July 2018 that started a year ago and declined in June, while the leading indicator remained stable.


The monitor declined to 52.90 from 54.37 as the leading indicator stood at 40.63.


The trend of the two indicators suggests that the Namibian economy continues to experience strong headwinds, which is particularly reflected in the value of the Leading Indicator that has remained below the 50-point mark since October 2016.
A value below 50 points indicates an economic contraction.


While ten indicators showed improvement, 17 deteriorated and four remained unchanged.


Copper cathode, diamond and uranium production decreased compared to June but remained above output levels in May 2018.
The number of livestock marketed fell as beef prices declined while lamb prices rose.


The value of building plans approved in Windhoek continued to increase, this time by more than 50% compared to June, which will bode well for the construction sector shortly.


The trade deficit remains at a high level, which will continue to exert pressure on the foreign exchange reserves.


The increase in passenger vehicle sales, which reached its highest level since March 2017, is a cause of concern, since such purchases are usually not an investment in productive assets, while the number of commercial vehicles sold dropped in July, although the sales remained above the average for the first seven months this year.


The trends in vehicle sales are reflected in the increase in credit to individuals, while credit extended to businesses declined in July 2018.