Chamwe Kaira
The Bank of Namibia (BoN) says economic growth projections for 2025 and 2026 are under review and could be lower than earlier estimates due to slower domestic activity and global uncertainty.
Speaking at the monetary policy announcement on Wednesday, Bank of Namibia governor Ebson Uanguta said real GDP growth is currently estimated at about 3% for 2025 and 3.8% for 2026. He said these figures may be revised downward.
Domestic activity slowed in 2025. Agriculture, fishing, mining and manufacturing contracted during the first three quarters of the year. As a result, the growth outlook for 2025 is weaker than previously projected. High-frequency indicators also point to subdued activity.
Inflation is expected to remain stable. The central bank projects inflation at 3.5% in 2026 and 3.4% in 2027.
“This outlook is supported by anticipated lower global oil and food prices, as well as a stronger domestic currency. The governor cautioned that exchange rate volatility and ongoing geopolitical tensions could still push inflation above current projections,” Uanguta said.
On the global front, Uanguta said world growth remains fragile due to trade policy uncertainty, weak demand and geopolitical tensions. The International Monetary Fund projects global growth at 3.3% in 2026, unchanged from the previous two years, before easing to 3.2% in 2027.
Global inflation has moderated, supported by lower energy and food prices. Gold prices remain near historic highs, while zinc, copper and uranium prices have stayed firm. Diamond prices continue to face pressure due to competition from lab-grown stones and high inventories. Crude oil prices have risen on renewed geopolitical tensions.
Namibia’s external position improved in 2025. The merchandise trade deficit narrowed by 35.4% to N$25 billion, driven by strong uranium and gold exports.
International reserves increased after the redemption of a US$750 million Eurobond. Reserves stood at N$51.9 billion at the end of January 2026. This equals about 3.3 months of import cover, which the central bank said is enough to support the currency peg and meet external obligations.
The Monetary Policy Committee kept the repo rate unchanged at 6.50%. The bank said the decision aims to protect the one-to-one peg between the Namibian dollar and the South African rand while supporting the domestic economy.
Uanguta said the current policy stance seeks to contain inflation, support growth and maintain orderly capital flows. The next MPC meeting will take place on 27 and 28 April 2026.
Caption
Members of the Bank of Namibia’s Monetary Policy Committee.
- Photo: Bank of Namibia
