NAMIBIA experienced slow economic growth in 2025, but is expected to regain momentum in 2026, according to the African Development Bank.
The economy slowed to 2.6% in 2025, weighed down by weaker mining exports, subdued consumer spending and softer 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 projected rebound to 3.7% this year will be driven by renewed activity in mining, manufacturing and electricity production, alongside stronger domestic consumption.
Economic growth also decelerated to 3.7% in 2025 amid weaker global diamond demand, reduced exploration activity and an agricultural downturn.
Despite the expected recovery, the bank cautioned that fiscal and external pressures will remain.
Namibia recorded a fiscal deficit of 2.6% in 2024. This widened to 3.4% in 2025 due to drought-related spending and lower Southern African Customs Union receipts.
