Namibia

Namibia Q4 2025 Economic Report: 0.5% GDP Contraction, 3.4% Inflation, N$172.7B Debt

The Bank of Namibia released its Q4 2025 quarterly economic report showing the domestic economy contracted by 0.5 percent year-on-year, driven by declines in diamond production and weaker manufacturing output, with nominal GDP estimated at N$72.0 billion. Headline inflation remained at 3.4 percent quarter-on-quarter while Central Government debt stock reached N$172.7 billion at the end of December 2025, representing 64.0 percent of GDP and remaining above the SADC benchmark of 60 percent. The current account deficit narrowed to N$10.1 billion from N$12.3 billion in the same quarter of 2024.

Namibia Economy Projected to Grow 2.6% in 2026

The Bank of Namibia released its March 2026 Economic Outlook update, projecting Namibia's domestic economy to grow 2.6 percent in 2026 and 2.9 percent in 2027, compared to an estimated 1.7 percent growth in 2025. The 2026 and 2027 projections reflect downward revisions of 1.2 percentage points and 1.4 percentage points respectively, from the December 2025 Economic Outlook update, driven primarily by weaker performance in primary industries including metal ores and diamond mining. Growth is expected to be supported by expansion in construction, electricity and water, wholesale and retail trade, financial services, and public administration and defence, as well as uranium mining operations.