Namibia's economy expected to improve: central bank

People visit the expo of the 4th Industrial Revolution Conference in Windhoek, Namibia, on June 7, 2022. (Photo by Ndalimpinga Iita/Xinhua)

Namibia's financial system is stable, resilient, and sound despite prevailing risks and vulnerabilities, the central bank said.

WINDHOEK, Aug. 6 (Xinhua) -- Namibia's financial system is stable, resilient, and sound despite prevailing risks and vulnerabilities, the central bank said Friday.

The assessment follows as Macroprudential Oversight Committee of the Bank of Namibia (BoN) meeting held on Thursday, Ebson Uanguta, BoN deputy governor, said in a statement.

"The banking and non-bank financial industries continued to perform adequately and remained profitable during the first half of 2022," he said, adding that the banking industry expanded its balance sheet and remains liquid, profitable, and well capitalized, while the non-bank financial industry is reporting funding and solvency positions above the prudential limits.

This file photo shows Ebson Uanguta (L), deputy governor of Namibia's central bank, makes a purchase using the 30-Namibia-dollar commemorative banknotes in Windhoek, Namibia, on May 15, 2020. (Photo by Musa C Kaseke/Xinhua)

According to Uanguta, the domestic economy is expected to improve in 2022 and 2023, albeit at a slower pace than previously anticipated.

"The resilience of the domestic financial system has enabled it to withstand the impact of geopolitical tensions, inflationary pressures, tightening monetary policies, and COVID-19," he said.

Meanwhile, Uanguta said in pursuit of safeguarding the stability of the Namibian financial system, the Bank of Namibia in collaboration with the Namibia Financial Institutions Supervisory Authority will continue to monitor risks and take appropriate steps.