Bank of Namibia: Economy Growth Forecast Cut to 2.1% Amid Challenging Global Conditions

• The Bank of Namibia has lowered its growth forecast for Namibia's economy to 2.1% this year, citing weak performance in key sectors.
• Higher transport costs remain a concern for businesses across the economy and can eventually push up prices of goods and services.
• Namibia's trade deficit widened to N$19.3 billion during the first six months of 2026, mainly driven by higher import payments.

The economy grew by 1.7% in 2025, but the expected recovery has been weaker than initially forecast.

The Bank of Namibia has lowered its growth forecast for Namibia's economy to 2.1% this year, citing weak performance in key sectors such as mining, manufacturing, and transport during the first half of 2026. This reduction of 0.5 percentage points from the previous forecast reflects the subdued economic activity observed during the same period. The economy had grown by 1.7% in 2025, but the anticipated rebound has been slower than expected. Bank of Namibia governor Ebson Uanguta attributed the weaker outlook to challenging global conditions and softer demand for some key exports. He also noted that rising import costs are putting pressure on businesses across the economy.

The Bank of Namibia's decision to lower its growth forecast is likely to have significant implications for businesses operating in Namibia, particularly those with investments in key sectors such as mining and manufacturing. The central bank's expectations for inflation to average 4.0% in 2026, compared to 3.5% in 2025, may also influence monetary policy decisions in the coming months. Furthermore, the widening trade deficit and higher transport costs remain concerns that could impact businesses and consumers alike. Lawyers advising clients with business interests in Namibia should be aware of these developments and their potential consequences for the economy.

The weaker economic outlook for Namibia has far-reaching implications for businesses, investors, and policymakers. The country's trade deficit and higher transport costs are concerns that could impact the balance of trade and inflation rates in the coming months. Furthermore, the Bank of Namibia's decision to lower its growth forecast may influence monetary policy decisions and have significant implications for businesses operating in key sectors such as mining and manufacturing. As a result, it is essential for lawyers advising clients with business interests in Namibia to stay informed about these developments and their potential consequences for the economy.

Lawyers advising clients with business interests in Namibia should be aware that the country's economy is expected to grow by just 2.1% this year, and that higher transport costs remain a concern for businesses across the economy.

Source: Original reporting via Namibia's Growth Outlook Cut As Economy Weakens ... Repo Rate Remains Unchanged At 6.75 Percent