The predicted 3% economic growth is not expected to improve Namibia’s employment crisis.
The Economic Association of Namibia (EAN) says the growth will not be able to generate enough jobs to significantly reduce unemployment.
“A growth rate of around 3% is often described as ‘respectable’, but in Namibia’s current economic structure, growth of around 3% is unlikely to generate enough jobs,” EAN says.
The association says this is because much of the growth tends to come from capital-intensive sectors, where output can increase without the need to hire many additional workers.
EAN suggests that growth should be steered towards construction and housing, tourism and hospitality, agriculture and agro-processing, as well as retail, logistics and services.
The Bank of Namibia expects economic growth to improve in 2026, following a more subdued performance in 2025.
Growth is forecast to hover around 3% in 2025, with an acceleration to 3.9% expected in 2026, assuming better performance in some sectors.
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