Namibia's central bank says the country's economy contracted by 8% in 2020 compared to a contraction of 0.6% in 2019 mainly due to weak tourism and public sectors.
Other sectors that contacted include transport, mining, agriculture, manufacturing, construction, wholesale and retail trade, said Bank of Namibia Governor, Johannes Gawaxab.
The central bank governor said the COVID-19 pandemic led to sharp declines in output recorded in the tourism sector.
The recovery in the tourism sector will happen once the health crisis is averted and it will be gradual as travellers build confidence regarding their safety when travelling.
"The successful procurement and expeditious rollout of COVID-19 vaccination in Namibia will be critical for the extent and speed of the economic recovery," said Gawaxab.
The country's hotels and restaurants sector is projected to recover to growth rates of 3.2% and 6.4% in 2021 and 2022, respectively, from a contraction of 55% in 2020.
International arrivals decreased by 96.9%, year-on-year, during the third quarter of 2020 largely due to the impact of the COVID-19 pandemic which severely affected the tourism sector.
However, international rivals rose significantly by 425.9%, quarter-on-quarter, during the third quarter of 2020.
The quarter-on-quarter rise was largely due to base effects, following the easing of the lockdown measures, coupled with inward repatriation flights that inflated airport arrival data, during the third quarter of 2020.
