Windhoek:Namibia's economy expanded by 4.8% in the second quarter of 2026, bolstered by stronger services activity, agriculture, and increased investment, as reported in the Bank of Namibia's September Quarterly Bulletin released on Wednesday.
According to NAMPA, the growth marked an improvement from the 3.1% recorded in the previous quarter and 1.7% during the corresponding quarter of 2025. The Bank of Namibia attributed this stronger performance primarily to the tertiary industries, particularly in health, wholesale and retail trade, information and communication, and financial services.
Agriculture showed robust growth supported by favorable rainfall and a recovery in the national herd, while fishing activity also expanded. However, mining output remained negative, and activity in the secondary industry slowed due to a decline in the construction sector, which offset moderate growth in manufacturing.
Inflation increased during the quarter, with headline inflation averaging 3.9% compared to 2.5% in the previous quarter. This rise was mainly due to higher transport costs following increased oil prices, which elevated fuel prices and transportation costs for food and other goods. Annual inflation climbed to 5.0% in August from 4.4% in July.
Annual broad money supply growth rose to 11.5% during the quarter from 7.9% previously, while private sector credit extension increased slightly to 4.5% from 4.3%. Government debt grew by 6.1% year-on-year to N$181.9 billion at the end of June, equivalent to 65.1% of the gross domestic product.
Namibia's current account deficit widened to N$12.1 billion in the second quarter, while foreign reserves increased by 9% to N$56.4 billion, providing an estimated 3.5 months of import cover. The bank noted that reserves further increased to N$58.5 billion at the end of August.
The Bank of Namibia cautioned that global growth is expected to remain subdued in 2026 before recovering in 2027, highlighting conflicts in the Middle East as significant downside risks to the global economic outlook.