Domestic economy poised for stronger growth …however, policy reforms will determine long-term gains

Namibia’s economic outlook remains cautiously optimistic despite a more challenging global environment, with economists arguing the country has a rare opportunity to transform its economy by combining fiscal discipline, structural reforms and prudent management of emerging oil and gas wealth. While growth expectations have been revised lower from earlier forecasts, both the latest Namibia Quarterly Economic Review (QER) from the Institute of Public Policy Research (IPPR) and an economic outlook by R&J Steytler Management Consultants conclude the domestic economy remains on a positive trajectory, supported by mining, energy, logistics and infrastructure investment.

However, both reports warn the country cannot rely solely on resource discoveries to secure long-term prosperity.

The analysts also note that economic growth estimates have become more conservative after official statistics revealed the economy expanded by only 1.7% in 2025, substantially below earlier government expectations of 2.9%. Following the revised data, the Bank of Namibia cut its growth forecast to 2.6% for 2026 and 2.9% for 2027.