Namibia’s budget deficit as a percentage of gross domestic product (GDP) is expected to decrease in the 2026/27 financial year.
According to an economic outlook report by PSG Wealth, the deficit share will decline from 5.9% in the 2025/26 fiscal year to 5.3% in 2026/27.
“Rising debt-service costs continue to limit the fiscal space available for development expenditures intended to support economic growth.
According to our forecast, the budget deficit as a share of GDP is projected to narrow moderately from 5.9% in the 2025/26 fiscal year to 5.3% in 2026/27,” the report reads.
Last year, the account deficit widened to 8.8% of quarterly GDP in the third quarter of 2025, compared with deficits of 8.4% in the preceding quarter and 7.8% in the corresponding quarter of 2024.
During the tabling of the national budget last year there was a deficit of N$12.8 billion, or 4.6%, of estimated GDP.
