Namibia Slashes 2026 Economic Growth Forecast To 2.3% As Mining Revenue Drops

(MENAFN- The Peninsula) Xinhua

Windhoek: Namibia has slashed its 2026 economic growth forecast from 3.1 percent to 2.3 percent following a weaker-than-expected performance in the first half of the year, Finance Minister Ericah Shafudah announced Thursday.

Presenting the 2026/2027 mid-year budget review in Parliament, Shafudah projected growth of 2.6 percent in 2027, 3.0 percent in 2028 and 3.3 percent in 2029, supported by mining projects, strong uranium and gold prices, and a recovery in consumption as inflation and interest rates ease.

Revenue for the current financial year is now forecast at 88.1 billion Namibian dollars (about 5.34 billion U.S. dollars), reflecting lower mining receipts, fuel levy revenue and administrative fees, she said.

Diamond taxes and royalties are projected to fall to 414 million Namibian dollars in 2026/2027 from 5.8 billion Namibian dollars in 2023/2024.

Shafudah said mining revenue remained the main source of weakness, underscoring the need to diversify the economy through agriculture, downstream value addition, services and renewable energy.

Public debt is projected to reach 201.7 billion Namibian dollars, or 68.7 percent of gross domestic product (GDP), in 2026/2027. Interest payments are forecast at 15.4 billion Namibian dollars, equivalent to 17.5 percent of revenue, while the budget deficit is projected at 5.5 percent of GDP.

Furthermore, the government also plans to allocate 179 million Namibian dollars to contain and manage the foot-and-mouth disease outbreak, she noted.

Namibia's economy grew by 1.7 percent in 2025, down from 3.8 percent in 2024. The International Monetary Fund has urged the country to accelerate structural reforms to support private-sector-led growth and address persistent unemployment, poverty and inequality.

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