Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: Growth in Namibia's retail sector will remain subdued over the next few quarters due to
sluggish economic performance, while tightening crediting conditions and elevated inflation will weigh on
consumer spending and purchasing power. However, a stronger growth pick-up could be expected in 2017,
as inflation levels subside and the country's agricultural sector, which employs nearly a third of the total
labour force, recovers from El Niño-related damages.
Key Views & Developments
- During 2016-2020, we forecast total household spending to increase by 19.5% to USD5.8bn, with the
pace of growth accelerating toward the second half of our forecast period. We believe that restaurants and
hotels and communications will see the fastest growth in spending over the coming five years.
Spending on essential goods and services will increase by 0.3 percentage points to 68.4%. Food and nonalcoholic
drinks, along with housing and utilities, will remain the two largest categories, accounting for a
combined share greater than 44% in the annual household expenditures across our forecast period