Elevated prices and interest rates weigh on private consumption

Martin Endjala Namibians have not been spared by the rapidly rising inflation and interest rates experienced across the globe over the past year and a half. Undue pressure on disposable incomes has raised concerns about household consumption dynamics. “Weakening household consumption spending bodes ill for overall economic growth as consumer spending constitutes 78 percent of GDP,” economist,”Economist Ruusa Nandago said. Nandago says weaker consumer spending is expected to persist based on various economic indicators such as elevated inflation and interest rates, high unsecured credit uptake growth, high levels of indebtedness and residential property weakness. Nandago pointed out that the 2022…