Question

1. Discuss how the coronavirus pandemic is affecting the various aspects of the Namibian economy explained in the economic outlook. [20 marks]

2. Suggest the possible policies the government must take to counteract the effects of the coronavirus pandemic on the economy. [20 marks]

Answer 1

a) there is an estimated amount of 5 to 7.5 billion Namibia dollars is lost in GDP due to the impact of the lockdown. Due to loss of income, loss of business trading hours, and loss of jobs. loss of private demand of N$6 billion to N$12 billion was estimated for Namibia, which took the country 4 to 5 years back. the main reasons for this downfall are the persistently low international price for uranium and copper. The erratic rainfall may continue to negatively affect the performance of the agriculture sector. the China/US trade tensions may negatively affect the demand for Namibian minerals and products.weak performances in diamond mining and wholesale and retail trade sectors, tourism, domestic consumption.

b) The suggested policy to counterattack the coronavirus slowdown can be

1) government needs to redefine rules and regulations with space for the informal sector (open markets, part of street vending) to continue but under strict conditions also similar to the provisions for the retail shops

2) the government implementation of the fiscal policy. The government needs to introduce programs targeted to SMEs to urgently start venturing into other products.

3) quick strategy to revamp the tourism industry.

4) Strategy for SADC region to consider drawing up a regional operations plan.