Namibia’s economy is expected to grow by 3.5% in 2024 and 4% in 2025, the latest Economic Outlook update from the Bank of Namibia (BoN) said.
The report, released on Monday, outlines global, regional and domestic factors influencing the economy. Global economic growth is expected to slow, with world GDP anticipated to dip slightly from 3.3% in 2023 to 3.2% in both 2024 and 2025. Inflation and geopolitical risks are the primary drivers of this slowdown, while major economies such as China and India are also experiencing slower growth, affecting emerging markets, including Sub-Saharan Africa.
Domestically, Namibia’s growth is projected to ease from 4.2% in 2023 to 3.5% in 2024, attributed to weak demand for minerals, ongoing drought conditions, and declines in the diamond and crop farming sectors. However, stronger performances in gold mining, livestock farming, healthcare and retail trade have prompted an upward revision from earlier growth estimates of 3.1%.
BoN’s Director of Strategic Communications and International Relations, Kazembire Zemburuka, said while Namibia’s economy shows resilience in key sectors, challenges like drought and global demand for commodities remain risks that must be addressed to sustain growth.