WINDHOEK, Aug. 11 — Namibia’s central bank has lowered its 2026 economic growth forecast to 2.1 percent from 2.6 percent, citing a sharper-than-expected contraction in diamond mining and weaker construction activity, the Bank of Namibia said Monday.
In its August 2026 Economic Outlook Update, the central bank said real gross domestic product growth is projected to pick up from an estimated 1.7 percent in 2025 to 2.1 percent in 2026 before surging to 2.8 percent in 2027.
The latest projections represent downward revisions of 0.5 percentage points for 2026 and 0.1 percentage points for 2027 compared to the bank’s March forecasts.
Despite the downgrade, the bank said the economy is expected to recover gradually this year, supported mainly by a rebound in agricultural output following improved early-season rainfall, sustained growth in uranium mining, and continued expansion in wholesale and retail trade and construction.
The bank said the prolonged Middle East conflict has further weakened the domestic growth outlook by raising fuel and other input costs, causing shortages of some imported inputs, including sulphur, and disrupting transportation and logistics.
According to the bank, the domestic economy faces several downside risks, including outbreaks of foot-and-mouth disease in neighboring Botswana and South Africa, which could affect livestock production and export earnings.
Other risks include geopolitical tensions and shifts in U.S. policies that could increase volatility in commodity prices and exchange rates, while the cost and availability of key imported inputs, particularly fuel, remain a concern, the bank added. (Namibia Daily News / Xinhua)
