Namibia’s economy grew by 2 percent in the first quarter of 2026, recovering from weak growth in the previous quarter but slowing compared with the same period a year earlier, according to the Namibia Statistics Agency (NSA).
The expansion marked an improvement from the 0.1 percent growth recorded in the final quarter of 2025, but was below the 2.8 percent growth registered in the first quarter of 2025.
The NSA said growth was mainly supported by the services sector, which recorded real output growth of 5.1 percent during the quarter.
Wholesale and retail trade, financial services, health, education and public administration were among the main contributors to the services sector’s performance.
However, activity in Namibia’s primary and secondary sectors weakened, with declines in mining and manufacturing weighing on overall economic growth.
Mining output contracted by 12.2 percent, driven largely by lower production of key minerals, particularly diamonds and gold.
“The decline was mainly due to a significant reduction in mineral production, particularly diamonds and gold,” the statistics agency said.
Namibia’s economy remains heavily dependent on mining, making fluctuations in commodity production and global demand a major factor affecting growth.
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On the demand side, household consumption increased by 1.4 percent in the first quarter, a sharp slowdown from the 8.4 percent growth recorded during the same period in 2025, reflecting weaker consumer spending.
The latest figures highlight ongoing challenges facing the southern African economy, including limited diversification and vulnerability to changes in global commodity markets.
The International Monetary Fund (IMF) said Namibia’s economic growth slowed to 1.7 percent in 2025, affected by prolonged weakness in the diamond sector and slower activity in oil exploration.
The impact was partly offset by stronger uranium production, improved livestock activity and continued growth in services.
The IMF expects Namibia’s economic expansion to remain subdued in 2026 due to weak diamond production, lower gold output and rising fuel costs.
However, the Fund forecasts a gradual recovery over the medium term, with growth expected to return to around 3 percent as economic activity improves.
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Analysts say stronger diversification efforts and investment in new sectors will be important for Namibia to reduce its dependence on mining and build more resilient long-term growth.
