Namibia’s economy is likely to post a moderate growth of 2.1 per cent this year, further rising 2.8 per cent in 2022.

The country’s economic growth is projected to also average around 3.4 per cent by the end of 2024, authorities said on Wednesday.

“All major industry sectors are forecast to post a moderate positive growth in 2021 relative to the sharp contraction in the past year,’’ Finance Minister, Ipumbu Shiimi, told lawmakers as he presented the budget.

“Economic recovery is expected to be anchored by the growth in the mining industries, particularly the rebound in mining activities,’’ Shiimi added.

The budget deficit is expected to stand at 8.6 per cent of gross domestic product (GDP) in the 2021-2022 fiscal year, down from an estimate of 9.7 per cent in 2020-2021.

According to Shiimi, the budget deficit will be financed through a combination of domestic and external borrowings.

Namibia expects budget revenue to decline by 6.1 per cent to 52.1 billion Namibian dollars (about $3.6 billion) in the fiscal year, from the estimated 55.5 billion Namibian dollars (about $3.83) in 2020-2021.

The minister said the dwindling revenues are largely due to the expected contraction in the Southern African Customs Union (SACU) receipts.

The revenues are expected to gather pace at an average rate of 4.8 per cent as domestic economic activities and regional trade pick up, Shiimi added.