Higher diamond earnings to improve Namibia fiscal position – report

Higher diamond earnings in 2021 will help improve the fiscal positions of Namibia following a budget deficit last year, according to the local media citing a report by PSG Namibia.
PSG Namibia’s research analyst Shelly Louw said demand for diamond jewellery had been robust this year due to strong consumer sentiment in the US and China.
Namibia’s diamond output rose by about 65% to 400 000 carats in the third quarter of the year when compared to the 2020 third-quarter output.
The weaker output in the comparative period last year was mainly due to the suspension of a diamond mining vessel of Debmarine Namibia in response to lower diamond demand.
Meanwhile, Louw said the outlook for diamonds in the remainder of 2021 and 2022 is mixed as it is anticipated that the Chinese consumption will slow down while the US and Indian consumption will remain stable.
“China has lost some economic momentum going into 2022 due to a downturn in the residential real estate market, the impact of repeated COVID-19 outbreaks, and production cuts related to climate change targets,” she said.
“Meanwhile, India’s government has continued to reopen its economy since the Delta surge started to dissipate towards the end of the second quarter which had boosted consumption, but Indian consumers are still taking some caution due to the relatively low proportion of the fully vaccinated,” commented Louw adding that “US consumer spending, on the other hand, is expected to be buoyant on the back of an improving health situation, reinvigorated demand for services, and stronger hiring.”

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished