The domestic economy is projected to expand by 3.9% in 2023, followed by a moderation to 3.4% in 2024. 

This is contained in the latest economic outlook released by the Bank of Namibia (BoN).

The central bank's latest forecast reflects a downward revision of 0.2% compared to the previous update.

Despite the expected slowdown, Namibia's economy remains resilient amidst a challenging global economic landscape.

Globally, economic growth is anticipated to decelerate due to tight monetary policies aimed at curbing inflation, financial volatility, geopolitical tensions, and the ongoing conflict in Ukraine.

According to the International Monetary Fund, global growth declined from 3.5% in 2022 to 3.0% in 2023, followed by a further decrease to 2.9% in 2024. 

While emerging markets and developing economies are projected to maintain stability with a growth rate of 4.0% in 2023 and 2024, revisions in China's property sector and a lower investment appetite pose potential risks.

Within the Sub-Saharan African region, Namibia's growth outlook aligns with the broader trend of a temporary deceleration in 2023, followed by a recovery in 2024. 

GDP growth in the region is estimated to slow to 3.3% in 2023 before rebounding to 4.0% in 2024.

However, these projections reflect downward revisions of 0.2 and 0.1% points for 2023 and 2024, respectively.

The moderation in growth can be attributed to adverse weather conditions, global economic headwinds, and persistent inflation.

The global economic outlook is surrounded by several risks, including tight monetary policies, volatile commodity prices, geopolitical tensions, inflationary pressures, and China's economic slowdown. 

Factors such as persistent inflation could lead to demands for higher wages, while drought conditions may cause food price spikes and global food insecurity.

Geopolitical tensions and supply chain disruptions stemming from the wars in Ukraine and the Middle East pose additional risks.

Furthermore, the property market crisis in China could have a dampening effect on global growth prospects.

Within Namibia, the projected slowdown in economic growth is primarily influenced by weaker global demand and an expected contraction in the agriculture sector. 

The estimated growth of 3.9% in 2023 represents an upward revision of 0.6% points from the previous forecast, driven by stronger performance in other mining and quarrying activities during the first half of the year.