Consequently, the economy is expected to contract by about 1.1 percent in 2009, while a moderate recovery is envisaged for 2010. In part, due to depressed international demand conditions, inflationary pressures have been largely under control. The annual rate of inflation has declined to 7.1 percent in September.
Declining levels of inflation has allowed the Bank of Namibia to ease monetary conditions, but domestic demand is yet to show a sustained recovery. In line with the global economic recovery, there are encouraging signs of a recovery in the Namibian economy, but it will take a while for economic activities to reach pre-crisis levels and become more sustainable.