Windhoek: Finance Minister Ericah Shafudah on Tuesday announced that Namibia's economic growth forecast has been revised downward to 3.3 per cent from an initial 4.5 per cent estimate. Shafudah, while presenting the country's Mid-Year Budget Review for the 2025/26 Fiscal Year in Parliament, attributed the slowdown to reduced output in secondary industries, particularly manufacturing, which is expected to grow by only 1.9 per cent compared to 3 per cent in 2024.

According to Namibia Press Agency, despite this, the primary industry is projected to grow by 2.5 per cent, supported by increased uranium and gold production. The tertiary sector, which includes tourism and trade, is forecast to fall to 3.7 per cent from 4.9 per cent last year.

Shafudah said: 'The government remains committed to fiscal sustainability, with the Bank of Namibia lowering the repo rate to 6.5 per cent in October to stimulate domestic economic activity. Trade deficit narrowed significantly, contracting by 49 per cent year-on-year to N.dollars 4.5 billion, driven by a 25.4 per cent increase in export earnings, mainly from gold and uranium.'

Revenue collection for the 2025/26 financial year reached N.dollars 36.6 billion by September, representing 40 per cent of the annual target, she said, noting that this is 10 per cent lower than the same period last year. Expenditure stood at N.dollars 41 billion, or 39 per cent of the budget, reflecting a decline.

Public debt rose to N.dollars 176.3 billion, with interest payments increasing to N.dollars 6.8 billion and government guarantees slightly decreasing to N.dollars 8.1 billion.

Shafudah called for urgent policy actions and expenditure restraint to maintain fiscal stability, stressing that without corrective measures, the baseline fiscal scenario could deteriorate further, affecting key indicators such as the debt-to-gross domestic product (GDP) ratio.