Windhoek: Namibia's economy is expected to grow by 2.1% in 2026 and by 2.8% in 2027, up from 1.7% recorded in 2025, the Bank of Namibia (BoN) said in its Economic Outlook update released on Monday.
According to Namibia Press Agency, the projected recovery is underpinned by a rebound in agricultural output on the back of improved early-season rainfall, sustained strength in uranium mining, and continued growth in wholesale and retail trade and construction, notwithstanding a persistent deep contraction in diamond mining and metal ores.
The 2026 growth estimate represents a downward revision of 0.5 of a percentage point relative to the March 2026 Economic Outlook update, as a deeper-than-anticipated contraction in diamond mining and softer construction activity outweighed an improved outlook for agriculture.
The bank said the prolonged war in the Middle East had further contributed to the poorer growth outlook, through increased input costs, mainly fuel, enhanced scarcity of imported inputs such as sulphur, and worsening transportation and logistics.
Globally, economic growth is expected to decelerate in 2026, mainly due to disruptions associated with the conflict in the Middle East, before improving slightly in 2027, the bank said.
According to the July 2026 International Monetary Fund (IMF) World Economic Outlook update, global growth is forecast to decrease to 3.0% in 2026 and increase to 3.4% in 2027, remaining below the 3.5% recorded in 2025.
Growth in advanced economies is projected to drop from 1.9% in 2025 to 1.7% in 2026 and 1.8% in 2027, on account of monetary policy tightening, the Middle East conflict, and softer demand momentum, the bank said.
Growth in sub-Saharan African economies is projected to fall from 4.5% in 2025 to 4.3% in 2026, before increasing to 4.5% in 2027, the bank said, adding that the World Bank forecasts growth in the region at 4.1% in 2026 and 4.2% in 2027.
The domestic economic outlook remains subject to downside risks from external and domestic developments, BoN said.
The Economic Outlook update comes ahead of the Bank of Namibia's next Monetary Policy Committee announcement, scheduled for Wednesday, where the central bank will announce its decision on the repo rate, currently at 6.75%.