Namibia’s economy to grow by 3.8% in 2025 and 4% in 2026

Namibia’s economy is anticipated to grow by 3.8% in 2025 and 4% in 2026, from the 3.7% estimated in 2024.

The slight growth is attributed to the improved performance of the extractive, agricultural and fishing sectors, particularly due to growth in crop farming and uranium production.

“The latest projections for 2025 and 2026 reflect a downward revision of 0.2 and 0.5 percentage points from projections published in the December 2024 Economic Outlook update, reflecting heightened uncertainty emanating from global trade policy shifts,” Bank of Namibia Director: Strategic Communications and International Relations Kazembire Zemburuka said.

The primary industries are projected to grow to 0.8% and 1.8% in 2025 and 2026, respectively following a 1.8% contraction in 2024 due to the severe impact of drought.

BoN’s latest projections, however, reflect a downward revision of 2.0 percentage points for 2025 growth and 1.0 percentage points for 2026 from its last update.

“The downward revision for 2025 growth was mainly due to the ongoing poor performance in the diamond sector,” Zemburuka.

Namibia’s secondary industries, which include manufacturing and the processing of raw materials, could grow by 6.3% this year and 6.4% in 2026 following a 3.0% growth rate last year.

The central bank attributed this improved performance to the anticipated expansion of both public and private construction activities and improvements in the electricity and water sectors, leading to an upward revision of 2.1 percentage points for 2025 and 1.4 percentage points for 2026.

“This revision reflects strong growth expectations from the electricity, water, and construction sectors compared to the estimates published in the December 2024 Economic Outlook update.”

The manufacturing sector could record a 3.7% this year and a more improved 4.2% in 2026 driven by strong grain harvests as a result of good rains this year.

The tertiary industries, which provide services, on the other hand are expected to grow by 3.5% in 2025 and 4.0% in 2026, from the 4.9% growth registered in 2024.

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