Namibia revises economic growth forecast to 2.3% amid mining revenue decline

Namibia has lowered its 2026 economic growth forecast to 2.3% from an earlier projection of 3.1%, following weaker-than-expected performance in the first half of the year. Finance Minister Ericah Shafudah announced the revision during a mid-year budget review, citing a significant downturn in the diamond industry as a primary driver of fiscal pressure.

Diamond taxes and royalties are projected to plummet to N$414 million in the 2026/27 financial year, down from N$5.8 billion in 2023/24. This decline has contributed to a N$1.5 billion downward revision in total revenue forecasts, which now stand at N$88.1 billion. Consequently, the government is seeking a budget increase of approximately N$700 million to N$88.6 billion to cover urgent requirements in healthcare, defense, and public service medical aid.

Public debt is expected to reach N$201.7 billion, or 68.7% of GDP, with interest payments projected to consume 17.5% of total revenue. While the outlook remains pressured by commodity fluctuations and rising debt-servicing costs, the government anticipates a recovery toward 3.3% growth by 2029, supported by uranium and gold prices and new mining projects.