Namibia’s economy is rebalancing, but significant challenges remain. The fiscal and current account deficits have narrowed, and credit and house prices growth has decelerated. However, public debt remains on a rising path, reserve coverage is below adequate levels, and growth has recently halted. Past years of strong growth masked slowing productivity and deteriorating external competitiveness, hindering the country’s development prospects; while income inequality and unemployment remain persistently high.
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