Namibia’s growth outlook cut as economy weakens … Repo rate remains unchanged at 6.75%

Pricilla Mukokobi

Ester Hakaala

Namibia’s economy is expected to grow by just 2.1% this year after the Bank of Namibia lowered its growth forecast, citing weak performance in mining, manufacturing, electricity generation and transport during the first half of 2026.

The central bank reduced its growth outlook by 0.5 percentage points from its previous forecast after economic activity remained subdued during the first half of the year. The economy grew by 1.7% in 2025, but the expected rebound has been slower than anticipated.

Bank of Namibia governor Ebson Uanguta said the latest figures reflect the difficult conditions facing the domestic economy.

“The economy grew by 1.7% in 2025, but the expected recovery has been weaker than initially forecast,” Uanguta said. He said mining, manufacturing, electricity generation and transport recorded weaker activity during the first six months of the year, offsetting improvements in agriculture and the wholesale and retail trade sector.

The weaker outlook comes as Namibia continues to face pressure from a challenging global environment, softer demand for some of its key exports and rising import costs.