The Namibian Financial System Remains Sound and Resilient

The Namibian Financial System Remains Sound and Resilient Amidst Global and Domestic Economic Conditions

The Financial System Stability Committee (FSSC) held a meeting on the 3rd of October 2024, to assess the resilience of the Namibian financial system to potential risks emanating from both global and domestic fronts. Based on a thorough assessment of global and domestic macro-financial developments, the Committee found the domestic financial system to be stable, sound, and resilient. The Committee took note of the risks to financial system stability and remains committed to maintaining vigilance and steer the course to address any emerging risks appropriately. 


RECENT FINANCIAL STABILITY DEVELOPMENTS 

The FSSC at its meeting held on the 3rd of October 2024, conducted a thorough assessment of both global and domestic risks to financial stability, with a specific focus on the potential vulnerabilities that may have an impact on the Namibian financial system. 

1. The global GDP growth rate is expected to decline slightly in 2024, following tighter monetary conditions. In its July 2024 World Economic Outlook (WEO), the International Monetary Fund (IMF) projected that the global economy would grow by 3.2 percent in 2024, slightly lower than the 3.3 percent growth rate registered in 2023. The global economy remained resilient during the first half of 2024, despite challenges such as tight monetary conditions. Risks to the global economy include inflationary pressures from a lack of progress in reducing prices for services. Other global risks include trade and geopolitical tensions, as well as regional broadening of the ongoing military conflicts in various parts of the world.