Namibia's economic growth is projected to be at 2,3% in 2026, lower than the earlier forecast of 3,1%. 

This reflects weaker-than-expected performance in the first half of the year.

During the tabling of the mid-term budget, Finance Minister Erica Shafudah says the economy is expected to recover gradually to 2.6% in 2027, 3% in 2028 and 3.3% in 2029.

"The recovery is anchored by pipeline projects in the mining sector, supported by strong uranium and gold prices, and by stronger consumption as inflation and interest rates are projected to ease by that period. However, there are still key risks that remain, among others, muted global demand and commodity prices, especially for diamonds. Higher fuel prices, the undisputed El Nino, and the outbreak of food and mouth disease, of which the impact is yet to be assessed."

Inflation averaged 3.5% in 2025 and is projected to rise to 4% in 2026 before easing slightly to 3.9% in 2027.

The projections reflect an expected increase in oil prices.

The minister further stated that the Bank of Namibia maintained the repo rate at 6.75% in August 2026 to support the domestic economy.

"International reserves remain sufficient at about N$559.3 billion at the end of September 2026, which is equivalent to 3.6 months of import cover. In line with efforts that inspire reserve assets, the Bank of Namibia also advanced. In its gold-oxidant programme, it secured domestically produced gold valued at approximately N$878 million, thus reinforcing the country's financial resilience against external shocks."