Accra:Namibia's central government debt has increased to 65.1% of the gross domestic product (GDP) by the end of June 2026, rising from 62.6% in the previous year, as reported in the Bank of Namibia's September 2026 Quarterly Bulletin.

According to Namibia Press Agency, the bulletin highlighted that total government debt saw a 6.1% year-on-year rise. It also projected that the government's budget deficit would narrow in the 2026/27 financial year, with an estimated reduction to 5.5% of GDP, down from 6.6% in the 2025/26 financial year.

The central bank attributes the anticipated deficit reduction to revenue growth surpassing expenditure growth during the medium-term expenditure framework period, despite facing various economic challenges. However, this improvement in the annual deficit does not counteract the increase in the debt ratio recorded by the end of June 2026.

The report emphasizes that while government debt has continued to rise, the fiscal outlook suggests a decreasing deficit for the current financial year. The bulletin also noted a decline in government loan guarantees as a percentage of GDP, even though the overall debt ratio increased.

These developments underscore the significant role of government revenue and expenditure trends in shaping Namibia's fiscal outlook, as efforts continue to manage the debt burden and reduce the annual budget deficit.