WINDHOEK, Nov. 22 — Namibia‘s real gross domestic product (GDP) is expected to slow in 2025 before rebounding in 2026, the Bank of Namibia (BoN) said in its latest Macroprudential Oversight Committee statement released Friday.
According to the central bank, real GDP growth is projected to marginally slow to 3.5 percent in 2025, before rebounding to 3.9 percent in 2026.
“The decline in growth for 2025 is mainly on the back of a contraction in the livestock agricultural subsector, which continues to be adversely affected by the drought conditions experienced in 2024,” the bank said.
In addition, the diamond mining sector is expected to continue its decline, reflecting weak global demand, the imposition of trade tariffs, and rising competition from lab-grown diamond alternatives.
“The downside risk to the domestic economic outlook remains, including potential trade disruptions and inflationary pressure resulting from ongoing global economic policy uncertainties and geopolitical conflicts,” said the central bank.
Moreover, weaker diamond export earnings are expected to weigh on the domestic economy. But the BoN said that this could be partly offset by stronger performances in uranium and gold exports, which continue to provide positive momentum amid subdued conditions in the diamond market. (Xinhua)
