Efforts by central banks to strengthen economies crucial: Prime Minister

Prime Minister (PM) Saara Kuugongelwa-Amadhila has emphasised the importance of continued coordinated efforts between governments and central banks to strengthen support to the economy, in turn accelerating growth and employment creation.

Kuugongelwa-Amadhila made the remarks at the opening of the 57th meeting of the Southern African Development Community (SADC) Committee of Central Bank Governors (CCBG) in Swakopmund on Friday.

According to the PM, although central banks have managed to tame inflation and ensure that inflation pressures do not erode household incomes or spiral out of control, inflation largely emanating from recent global developments still remains sticky. Kuugongelwa-Amadhila said this has introduced a policy conundrum that has been testing the resolve of central banks.

“Optimism should certainly be exercised with caution as the battle is not yet won and in some of our member countries, inflationary pressures are still intensifying. Growth Domestic Product growth in the region continues to diverge but output generally remains below potential, with unemployment at higher levels. Whether these below-potential activity levels stem from structural or cyclical factors, it is here now and we must collectively craft ways to deal with it,” she stated.

The CCBG meeting provides an opportunity for SADC Central Bank Governors to receive updates on progress made with the implementation of the CCBG 2021-2023 strategy and further accords them the chance to craft the new 2024-2026 CCBG strategy.

The meeting, according to the Premier, takes place at a time when the SADC region like elsewhere is confronted with the problem of high inflation and low economic growth.

Also speaking at the event, Bank of Namibia Governor Johannes !Gawaxab said the meeting is taking place against the backdrop of a challenging and uncertain global economy characterised by low growth, and high inflation, among others, which should therefore be addressed.

“Our economic order is built on the pillar of monetary stability and without a sound monetary system, investments decline, growth falters and the aspirations of our people are jeopardised. Our efforts at financial integration rely heavily on this stability, which serves as the fundamental cornerstone,” he said.

Source: The Namibian Press Agency