Business Reporter
THE Bank of Namibia released the Economic Outlook update for March 2026, with the domestic economy estimated to expand marginally by 2.6 percent in 2026 and by 2.9 percent in 2027.
Kazembire Zemburuka, Director of Communications and International Relations at the central bank, said that the Namibian economy is projected to grow moderately over the medium term, following slower growth estimated for 2025.
“The domestic economy is estimated to have grown by 1.7% in 2025 and is projected to expand further by 2.6% and 2.9% in 2026 and 2027, respectively. Despite downward revisions compared to the December 2025 Economic Outlook update, growth in 2026 and 2027 remains moderate, primarily supported by anticipated expansion in the secondary and tertiary industries, particularly construction, electricity and water, wholesale and retail trade, financial services activities, and public administration and defence,” Zemburuka said.
He added that uranium mining is expected to remain a key source of growth within the primary industries, supported by increased production from existing operations.
“The latest projections for 2026 and 2027 reflect a downward revision of 1.2 percentage points and 1.4 percentage points, respectively, compared to projections published in the December 2025 Economic Outlook update. The downward revisions mainly reflect weaker-than-previously anticipated performance in the primary industries, particularly the significant contraction in metal ores production and continued weakness in diamond mining,” Zemburuka said.
He added that the domestic economic outlook remains subject to several downside risks from both external and domestic developments.
“Regionally, the outbreak of Foot-and-Mouth Disease in neighbouring countries, particularly in Botswana and South Africa, poses a risk to livestock production and export earnings. Globally, ongoing geopolitical tensions, as well as evolving United States policies, may contribute to volatility in commodity prices, exchange rates, and the cost of key imported inputs such as fuel,” he said.
On the other hand, global economic growth is projected to remain steady over the 2026–2027 period, with robust technological capital expenditures counterbalancing the volatility of shifting trade policies. In the latest update, the growth projections for 2026 were revised slightly upward to 3.3 percent by 0.2 percentage points, while that of 2027 was left unchanged compared to the October 2025 World Economic Outlook (WEO) projections.
Real GDP growth in advanced economies is projected to improve in 2026, with a subsequent marginal deceleration in 2027. Growth in advanced economies is projected to increase marginally to 1.8% in 2026 before moderating to 1.7% in 2027, the same level recorded in 2025. The United States economic growth is projected at 2.4% in 2026, a notable upward revision of 0.3 percentage points from the October 2025 WEO.
Real GDP growth in Emerging Markets and Developing Economies (EMDEs) is projected to decrease in 2026 and 2027. EMDE growth for 2025 is estimated at 4.4% and is projected to slow in 2026 and 2027 to 4.2% and 4.1%, respectively.
On the regional front, growth in Sub-Saharan African economies is expected to increase slightly in 2026 and 2027. Growth in Sub-Saharan Africa is projected to strengthen to 4.6 percent in both 2026 and 2027, compared to 4.4 percent estimated in 2025.
Picture for illustrative purposes only. Photo: Bank of Namibia
