WINDHOEK, April 28 (Xinhua) -- Namibia's economy is projected to grow 3.8 percent in 2025 and 4.0 percent in 2026, driven by improvements in crop farming, uranium production, and expansion in the electricity and water sub-sectors, according to figures released by the country's central bank on Monday.
The gradual recovery is expected to be supported primarily by growth in the primary industries, particularly agriculture and mining, while secondary industries, notably electricity and water, are forecast to provide additional momentum, the Bank of Namibia said in its latest Economic Outlook.
According to the bank, the updated projections reflect downward revisions of 0.2 and 0.5 percentage points for 2025 and 2026, respectively, from estimates published in December 2024 amid rising global trade uncertainties.
Despite the positive trajectory, the economy faces notable risks, including weaker diamond export earnings due to global price pressures and competition from lab-grown alternatives, the bank said. Further threats include potential trade disruptions linked to protectionist measures and inflationary pressures stemming from ongoing global conflicts.
The bank also warned that declining revenues from the Southern African Customs Union and diamond exports could strain public finances, heightening concerns over debt sustainability and the need for fiscal consolidation.
