Staff Writer
Global economic conditions heading into 2026 are expected to support steady growth rather than sharp expansion or contraction.
This is according to the 2026 outlook released by Simonis Storm. The report says financial markets are becoming more sensitive to economic fundamentals.
Corporate earnings quality, balance sheet strength and sustainable cash flow are expected to matter more than short-term market momentum.
It notes that equity market performance will likely depend on earnings growth and operational efficiency rather than rising valuation multiples.
Fixed-income assets are also regaining importance as sources of real income after years of low yields. Bonds are returning to their traditional role as portfolio stabilisers.
For Namibia, the outlook points to gradual strengthening in 2026.
Growth is expected to be supported by higher mining output, firm uranium prices and increased capital investment in offshore energy exploration and development.
These sectors are capital-intensive and are expected to contribute to gross fixed capital formation over the medium term.
“The economic impact of large resource projects is expected to be both direct and indirect. While direct contributions to gross domestic product growth may be visible, broader spillover effects through logistics, services and financial intermediation will depend on the maturity of project implementation. Import content associated with major infrastructure and energy developments may moderate domestic multiplier effects during early investment phases,” the outlook said.
The report notes that challenges remain. Unemployment is high. The formal tax base is narrow.
Fiscal space is limited. Resource-led growth alone is unlikely to resolve labour market pressures or income inequality. Private credit growth is expected to remain moderate as banks manage risk and household income growth stays subdued.
From an investment perspective, the outlook suggests selective positioning. Resource-linked companies and service providers with pricing power may remain attractive. Sectors that rely on strong consumer spending could see slower recovery.
“Overall, 2026 is expected to be characterised by balanced economic expansion rather than extreme cycles. Policy clarity in energy and infrastructure development, consistent regulatory frameworks and sustained fiscal discipline will be critical in translating investment into productivity gains.”
