The Namibia Statistics Agency (NSA) says the domestic economy expanded to an estimated N$70.9 billion in nominal terms during the first quarter of 2026, representing an increase of N$4.7 billion from the N$66.2 billion recorded during the same period in 2025.
According to NSA Statistician General Alex Shimuafeni, the economy grew by 2.0% in real terms during the quarter, moderating from the 2.8% growth recorded in the first quarter of 2025.
“In the first quarter of 2026, the size of the Namibian economy reached N$70.9 billion in nominal terms, reflecting an increase of N$4.7 billion compared to the N$66.2 billion recorded in the same period of 2025. In real terms (after adjusting for inflation), the domestic economy grew by 2.0% in the first quarter of 2026, although this represents a slowdown from the 2.8% growth observed in the corresponding quarter of 2025,” he said.
Shimuafeni said the country’s external trade deficit widened to N$21.0 billion during the quarter, compared to N$18.5 billion in the corresponding period of 2025.
The Statistician General also announced a slight upward revision to fourth-quarter 2025 growth, with the economy now estimated to have expanded by 0.1%, compared to the previously reported contraction of 0.5%, following updated data from the agriculture, mining and construction sectors.
The main driver of first-quarter growth was the tertiary sector, which expanded by 5.1%.
Wholesale and retail trade led the sector with growth of 9.3%, supported by double-digit increases in furniture sales and wholesale trade volumes.
Financial services recorded strong growth of 7.2%, up sharply from 1.6% in the first quarter of 2025, driven by a resilient banking sector where total deposits reached N$170.1 billion.
Public services also posted positive growth, with health expanding by 6.4%, education by 4.6% and public administration by 3.7%, largely supported by increased public sector employment.
“The performance of this quarter is mainly attributable to the tertiary industries, which recorded growth of 5.1% in real value added, the same rate recorded during the corresponding period of 2025. The performance was mainly driven by wholesale and retail trade (9.3% compared to 7.5%), financial service activities (7.2% compared to 1.6%), health (6.4% from 12.1%), education (4.6% compared to 4.7%), and public administration (3.7% compared to 4.3%),” he said.
Despite the strong performance of the services sector, primary and secondary industries remained under pressure.
Primary industries contracted by 5.7%, mainly due to a 12.2% decline in mining and quarrying. Weak global demand resulted in diamond production falling by 18.6% and metal ores by 31.2%, although uranium production increased by 14.6% on the back of favourable international prices.
Agriculture, however, rebounded strongly, growing by 12.1% following a 40.1% increase in cereal crop production.
Secondary industries contracted by 3.1%, mainly because manufacturing declined by 5.9%.
Manufacturing was weighed down by an 87.9% drop in basic metals production and a 35.7% decline in diamond cutting and polishing, while construction growth slowed to 1.6%, supported mainly by government infrastructure projects.
“Furthermore, economic activity slowed in the primary industries, which recorded a decline of 5.7% in real value added compared to a 4.2% contraction during the corresponding quarter of 2025. The weak performance was mainly attributed to the mining and quarrying sector, which recorded a decline of 12.2% in real value added due to reduced mineral production, particularly diamonds and gold,” Shimuafeni said.
On the demand side, Shimuafeni said final consumption expenditure slowed to 2.1%, mainly reflecting weaker household spending as private consumption growth eased to 1.4% from 8.4% in the corresponding quarter of 2025.
Investment, however, showed signs of recovery, with Gross Fixed Capital Formation increasing by 3.4%, supported by higher spending on machinery and transport equipment.
