Fiscal discipline key to improving Namibia's current account balance
The study looked at how different economic factors affect Namibia's current account balance. It found that when the country's government spends more than it earns (twin deficit), the current account balance worsens. Also, when there is more money coming into the country, the current account balance gets worse. On the other hand, higher interest rates, commodity prices, and population growth help improve the current account balance. Tightening monetary policy helps reduce unnecessary imports and makes the current account balance better.