WINDHOEK, June 30 — Namibia‘s public debt rose to 166.7 billion Namibian dollars (about 9.4 billion U.S. dollars) by the end of March, representing an 8.3 percent increase from the previous year, according to the latest Quarterly Bulletin released Monday by the Bank of Namibia.
The surge in debt, driven primarily by increased issuance of treasury bills and internal registered stock, pushed the country’s debt-to-gross domestic product (GDP) ratio to 66.3 percent, slightly above the Southern African Development Community (SADC) convergence benchmark of 60 percent, the bank said.
Despite the uptick, the central bank noted that government loan guarantees remained well below risk thresholds, standing at 3.4 percent of GDP, which is far below the national ceiling of 10 percent, indicating limited contingent liability risk for the country.
The report also revealed that Namibia‘s economic growth moderated in the first quarter of 2025, with real GDP expanding by 2.7 percent year-on-year, compared to 4.8 percent in the same period of 2024.
The bank said the inflation rate rose to 3.7 percent during the first quarter, up from 3.1 percent in the previous quarter, primarily due to rising transport costs.
However, year-on-year inflation declined from 5.0 percent in the first quarter of 2024, reflecting lower inflation in transport and housing.
According to the bank, liquidity in the financial system improved, driven by government disbursements, social grant payments, and the redemption of short-term securities.
Credit demand from businesses also increased amid easing monetary conditions and lower inflationary pressures, it added.
The central bank expected public debt levels to moderate to 61.4 percent of GDP over the medium-term expenditure framework period, as fiscal consolidation efforts continue. (Xinhua)
