Namibia’s economy expanded to N$269.8 billion in 2025, up by N$19.7 billion from N$250.0 billion in 2024, although real economic growth slowed markedly to 1.7%, according to data released by the Namibia Statistics Agency (NSA).
The latest figures point to continued nominal expansion, driven by price and output effects, but reflect a deceleration in underlying economic activity. Real GDP growth declined from 3.8% in 2024 and remains well below the 5.4% recorded in 2022.
NSA Manager of National Accounts Ngainonekue Uamburu said the increase in nominal GDP underscores the growing size of the economy, which serves as a key benchmark for macroeconomic indicators.
“The size of the economy expanded by N$19.7 billion in 2025. Nominal GDP reached approximately N$270 billion, up from N$250 billion in 2024. This measure reflects both production and price dynamics and is critical for indicators such as the debt-to-GDP ratio,” he said.
Over the past decade, nominal GDP has grown at an average rate of 6.3%, rising from N$158 billion in 2016 to current levels.
Sectoral performance was mixed, with construction emerging as the main driver of growth. The sector expanded by 20.2%, supported by increased civil engineering activity and building projects, particularly in the electricity subsector.
“Construction was the top performer at 20.2% growth, linked to building projects and increased civil engineering activity. This is closely tied to developments in the Electricity and Water sectors,” Uamburu said.
The Electricity and Water sector grew by 12.6%, driven by improved domestic power generation, particularly at the Ruacana Power Station following favourable rainfall, which reduced reliance on electricity imports.
The Information and Communication sector also recorded strong growth of 10.7%, reflecting increased internet usage and higher call volumes.
On the demand side, private consumption remained the dominant component of GDP, accounting for a record 78.3%, despite a marginal contraction of 0.3% in real terms.
External trade trends showed divergence, with exports increasing by 11.8%, while imports accounted for 63.9% of GDP. Although real import growth declined by 3.7%, the high share underscores Namibia’s continued reliance on imported goods.
Investment activity weakened during the period, with gross fixed capital formation declining by 8.3%, although its share of GDP remained above the long-term average at 21.5%.
The data reflects an economy that continues to expand in nominal terms, but with slowing real growth momentum and persistent structural dependencies shaping the outlook.
