Namibia’s economy continued to grow during the first quarter of 2026, reaching a total value of N$70.9 billion, although growth was weighed down by a sharp decline in mining activity.
The latest gross domestic product report released by the Namibia Statistics Agency (NSA) shows that the economy grew by N$4.7 billion, compared to the same period last year when it stood at N$66.2 billion.
However, when inflation is taken into account, the picture becomes more cautious.
The economy recorded real growth of 2.0% in the first quarter of 2026, slower than the 2.8% growth recorded during the same period in 2025.
WINNERS AND LOSERS
In a statement accompanying the release, statistician general Alex Shimuafeni says the quarter’s performance reflected “a tale of two halves”.
The service industries (tertiary sector) were the main drivers of growth, recording a strong 5.1% increase.
The biggest contributions came from wholesale and retail trade, which grew by 9.3%, financial services, which increased by 7.2%, and the health and education sectors, which expanded by 6.4% and 4.6%, respectively.
However, the mining and manufacturing sectors faced significant challenges.
The primary industries recorded a decline of 5.7%, largely due to the mining and quarrying sector, which fell by 12.2%.
The NSA attributes the decline to a “significant reduction in mineral production, mainly in diamond and gold”.
Manufacturing also recorded a decline of 5.9%.
NAMIBIANS’ SPENDING
The way Namibians are spending money is also changing.
Household consumption slowed significantly, growing by only 1.4%, compared to the much stronger 8.4% growth recorded last year.
Meanwhile, government spending increased by 4.5%, a trend the NSA attributes to “increased numbers of public servants”.
Moreover, gross fixed capital formation recorded a 3.4 increase during the quarter under review, relative to a decline of 4.8% posted in the corresponding quarter of 2025.
“This is due to an increase in investment of machinery, transport equipment and construction activities,” Shimuafeni says.
Export of goods and services grew by 4.1% during the quarter under review, while the import of goods and services increased by 4.6%.
“These statistics are prerequisites for planning, monitoring and evaluation, and progress reporting in view of the 2030 Agenda for Sustainable Development,” Shimuafeni says.
