Chamwe Kaira
The global economy continues to show resilience, even as forecasts point to slightly slower growth in the coming years.
Bank of Namibia (BoN) governor Johannes !Gawaxab said this week that since the last Monetary Policy Committee meeting in August, inflation trends have moved in different directions across major economies, while global stock markets have strengthened and bond yields have declined.
“The US Federal Reserve cut its policy rate for the first time this year, marking a shift in its monetary stance, while most other major central banks opted to hold their rates steady,” he said.
The Organisation for Economic Co-operation and Development reported that growth among G20 economies rose slightly in the second quarter of 2025, supported by strong performances in the United States and India.
The International Monetary Fund expects global growth to slow from 3.3% in 2024 to 3.2% in 2025 and further to 3.1% in 2026.
The 2025 projection, however, is 0.2 percentage points higher than previously forecast, suggesting economies are adjusting to ongoing trade tensions.
!Gawaxab said commodity markets have moved in mixed directions since August. Gold prices reached record highs as investors sought safe-haven assets, while zinc continued to rise due to limited supply. He said copper prices dipped slightly but stayed high because of disruptions at major mines. Uranium prices remained firm, supported by strong demand and tight supply. In contrast, crude oil prices fell due to increased global output and concerns over new US tariffs on Chinese goods. Diamond prices weakened slightly as lab-grown stones continued to gain market share.
He said global equity markets posted gains, led by the S&P 500, which extended its rally driven by technology stocks. Bond yields fell in most major economies, with notable declines in the US and China.
“Yields also dropped in South Africa, supported by stable fiscal indicators and easing inflation expectations, as the central bank signalled a preference for a lower inflation target,” he said.
Inflation trends also varied across regions. The United States, the United Kingdom, and the Euro Area recorded slight increases, while Japan’s inflation continued to slow.
In emerging markets, inflation eased in most economies except South Africa, where prices rose. China slipped into deflation.
“The IMF’s inflation outlook remains broadly unchanged, projecting global inflation to ease from 5.8% in 2024 to 4.2% in 2025 and 3.7% in 2026. Most central banks have maintained a steady policy stance since the August 2025 MPC meeting, with notable exceptions being the US Federal Reserve and the Bank of Russia, both of which implemented rate cuts to support their economies,” said !Gawaxab.
