Namibia’s economy is projected to grow by 3.7% in 2026, supported by a rebound in mining, manufacturing and electricity production, according to the African Development Bank.
The bank said the recovery follows a slowdown in 2025, when growth is expected to ease to 2.6% due to weaker mining exports and subdued consumption and investment.
“Growth is expected to slow to 2.6% in 2025, reflecting challenges in mining exports and weak consumption and investment, before rebounding to 3.7% in 2026, supported by a recovery in mining, manufacturing and electricity production, as well as consumption,” the bank said.
The outlook comes after Namibia’s growth decelerated to 3.7% in 2024, weighed down by weaker global diamond demand, reduced exploration and an agricultural downturn.
Despite the expected recovery, the bank cautioned that fiscal and external pressures will persist.
Namibia recorded a fiscal deficit of 2.6% in 2024, which is projected to widen to 3.4% in 2025 due to drought-related spending and lower SACU receipts, before narrowing to 2.5% in 2026.
Inflation is expected to remain contained over the forecast period, following a decline in 2025 before edging higher in 2026.
“Namibia recorded inflation of 4.2% in 2024 due to easing food and oil prices. Inflation is projected to remain moderate at 3.5% in 2025 and 4.1% in 2026,” the bank said.
External balances remain under pressure, with deficits driven by weaker SACU inflows and a widening trade gap.
“Namibia’s current account deficit rose to 16.5% in 2024. It is expected to ease to 15.1% in 2025 before widening slightly to 15.7% in 2026, reflecting weaker SACU inflows and a widening trade deficit,” the bank said.
The African Development Bank said Namibia’s overall outlook reflects a recovery in growth alongside continued strain in fiscal balances and the external account.
