Nairobi:Namibia's economy grew by 4.8% in the second quarter of 2026, driven by stronger services activity, agriculture, and increased investment, as reported in the Bank of Namibia's September Quarterly Bulletin.

According to NAMPA, this growth marks an improvement from the 3.1% recorded in the first quarter and 1.7% during the same period in 2025. The Bank of Namibia attributed the stronger performance primarily to the tertiary sector, with significant contributions from health, wholesale and retail trade, information and communication, and financial services.

Agriculture also maintained robust growth, supported by favorable rainfall and a recovery in the national herd, with fishing activity expanding as well. However, mining output remained negative, and secondary industry activity slowed due to a decline in construction, which offset moderate growth in manufacturing.

The bulletin noted a rise in inflation during the quarter, with headline inflation averaging 3.9%, up from 2.5% in the previous quarter. This increase was mainly due to higher transport costs following rising oil prices, which affected fuel and transportation costs for food and other goods. Annual inflation further increased 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 to 4.5% from 4.3%. Government debt grew by 6.1% year-on-year to N$181.9 billion by the end of June, equivalent to 65.1% of the gross domestic product.

Namibia's current account deficit widened to N$12.1 billion during the second quarter, while foreign reserves increased by 9% to N$56.4 billion, equivalent to an estimated 3.5 months of import cover. Reserves further increased to N$58.5 billion by the end of August.

The bank projected that global growth would remain subdued in 2026 with recovery expected in 2027, cautioning that conflicts in the Middle East pose significant downside risks to the global economic outlook.