Namibia’s current account deficit is projected to widen to 16.9% of gross domestic product (GDP) in 2026, from 13.1% in 2025, as the country faces growing external financing requirements amid sluggish economic growth, according to the International Monetary Fund (IMF).
The IMF’s October 2026 Sub-Saharan African Economic Outlook projects that the deficit will narrow to 14.4% of GDP in 2027, but remain significantly above regional averages.
The widening deficit means Namibia is expected to pay more to the rest of the world for goods, services and other obligations than it earns through exports and other external income, leaving a financing gap equivalent to nearly 17% of its annual economic output.
The projected deficit is substantially higher than the Sub-Saharan African average of 0.6% of GDP and the regional middle-income country average of 1.2% in 2026.
This means Namibia will require significant foreign investment, borrowing or other capital inflows to finance its external obligations, increasing its exposure to changes in international investment conditions.
The IMF projections come as Namibia’s economic growth is expected to remain subdued, with real GDP forecast to expand by just 2.0% in 2026, compared with 1.7% in 2025.
Growth is projected to improve to 2.7% in 2027, but will remain below the Sub-Saharan African average of 4.5%.
Namibia is also expected to underperform several regional economies, including Botswana, which is projected to grow by 4.4% in 2026, Zambia at 5.6% and Kenya at 4.5%.
The IMF figures indicate that Namibia’s external financing pressures will increase despite the modest improvement in economic activity.
A sustained current account deficit could place pressure on the country’s external financial position if foreign investment and other capital inflows are insufficient to cover the shortfall.
However, the economic implications will depend partly on whether the deficit reflects imports of machinery and equipment for productive investments or spending that does not generate future export earnings.
Inflation is also expected to increase, with the IMF projecting Namibia’s annual average consumer price growth at 4.1% in 2026, up from 3.5% in 2025.
Inflation is forecast to rise further to 4.2% in 2027, indicating continued pressure on household purchasing power and business operating costs.
Despite the increase, Namibia’s inflation is expected to remain below the Sub-Saharan African average of 8.6% in 2026.
The country’s external position also compares unfavourably with several regional economies.
Zambia is projected to shift from a current account deficit of 5.5% of GDP in 2025 to a surplus of 2.3% in 2026, while Botswana is expected to record a deficit of 1.0%.
Kenya’s current account deficit is forecast at 4.5% of GDP in 2026, significantly below Namibia’s projected 16.9%.
Although the IMF expects Namibia’s deficit to narrow by 2.5 percentage points in 2027, the forecast indicates that the country will continue to face substantial external financing requirements.
The projections highlight the need for stronger export earnings and sustained foreign investment to support Namibia’s external financial position while accelerating economic growth.
