Namibia’s central bank has lowered its economic growth forecasts for this year and next, citing a weaker-than-expected performance of primary industries, especially metals and diamond mining.
The Bank of Namibia said on Monday it now expects growth of 2.6% this year and 2.9% in 2027, revising down its previous forecasts by 1.2 percentage points and 1.4 percentage points, respectively.
“The downward revisions mainly reflect weaker than previously anticipated performance in the primary industries, particularly the significant contraction in metal ores production and continued weakness in diamond mining.”
It said growth drivers will mainly be in the secondary and tertiary industries, including construction, financial services and defence. Uranium mining is a bright spot in primary industries.
The resource-rich country’s economy has taken a hit from a prolonged downturn in the global diamond market, though strong gold and uranium prices have been a mitigating factor.
The central bank’s 2026 growth forecast is lower than the 3.1% projection given by the finance ministry in its annual budget, which was delivered days before the Iran war started on February 28.
Among downside risks, the central bank cited a foot-and-mouth disease outbreak in Botswana and South Africa, as well as further volatility in commodity prices.
Reuters
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