Domestic financial system stable, robust: BoN

Windhoek: The Bank of Namibia ( BoN ) has stated that the country ' s domestic financial system is stable , sound , and robust . This comes after the Financial System Stability Committee ( FSSC ) met on 03 October 2024 , to review the resilience of Namibia ' s financial system to global and domestic hazards . The committee said it recognises the dangers to financial system stability and is committed to addressing emerging concerns properly . According to a notice issued by BoN on Wednesday , global economic growth is expected to decelerate slightly in 2024 , with the International Monetary Fund ( IMF ) forecasting a 3 . 2 per cent growth rate compared to 3 . 3 per cent in 2023 . This slowdown , it stated is attributed to tighter monetary conditions globally . ' Inflationary pressures , driven by challenges in reducing service costs , remain a risk . In addition , geopolitical tensions , ongoing trade conflicts , and regional military conflicts pose threats to global stability ,' it stated . On the domestic fr ont , BoN indicated that economic activity showed consistent growth during the first half of 2024 and that the primary sector , particularly mining and livestock marketing , contributed positively to the overall economic performance . However , the secondary sector faced setbacks due to a decrease in local electricity generation and a decline in diamond cutting and polishing activities . These were mitigated by growth in construction and the production of blister copper , cement , beer , and soft drinks . The tertiary sector also showed strong performance , supported by wholesale and retail trade , information and communication , and tourism . ' Despite these gains , the GDP growth forecast for Namibia in 2024 is expected to slow to 3 . 1 per cent , influenced by drought conditions , low diamond prices , and weak global demand . Risks to the domestic economy remain largely driven by external global factors ,' it stated . The banking sector remained liquid , profitable , and well - capitalised , buoyed by grow th in net loans and advances . Non - bank financial institutions also maintained stability , supported by global market developments and steady demand for their products , it said. Source: The Namibia News Agency