Apr 30, 2025 (The Namibian/All Africa Global Media via COMTEX) --
Namibia's economy is expected to grow over the next two years, according to the latest economic outlook update by the Bank of Namibia (BoN).
This year, the economy is expected to grow by 3.8%, and 4% in 2026 - a slight increase from the estimated 3.7% growth in 2024.
The anticipated recovery in 2025 is expected to be primarily fuelled by an uptick in activities in the primary industry.
"The slight recovery for 2025 will be primarily driven by anticipated improvements in the primary industry, underpinned by robust growth in crop farming and uranium production," says BoN spokesperson Kazembire Zemburuka.
The anticipated improvement is driven by good rainfalls after the country experienced a severe drought for years.
Additionally, the mining sector is expected to recover, fuelled by significant growth in uranium and other mining and quarrying subsectors.
The secondary industries are also expected to contribute positively, with expansion in the electricity and water subsector.
"Secondary industries are projected to grow by 6.3% and 6.4% in 2025 and 2026, respectively, from a 3% growth rate registered in 2024," Zemburuka says.
This projected performance is attributed to the anticipated expansion of both public and private construction activities and improvements in the electricity and water sectors.
The growth estimates in 2025 and 2026 have been adjusted upwards by 2.1% and 1.4%, respectively.
In the tertiary industry, wholesale and retail trade, transport and storage, and education are expected to lead growth in 2025.
Tertiary industries are projected to grow by 3.5% in 2025 and 4% in 2026, from 4.9% registered in 2024.
Zemburuka, however, says there are risks from potential disruptions in global trade and inflation driven by international conflicts.
"Potential trade disruptions stemming from protectionist policies and inflationary pressures arising from ongoing global conflicts," he says.
Moreover, there is further strain on the economy from a reduction in Southern African Customs Union (Sacu) receipts.
"Adding to these challenges, fiscal strain from declining Sacu and diamond revenues could lead to debt unsustainability, potentially necessitating severe expenditure cuts," Zemburuka says.
COMTEX_465073965/2029/2025-04-30T11:03:16
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