Namibia trims growth forecast
The announcement highlights the challenges facing an economy still grappling with weaker demand for the country’s minerals.
Namibia has reduced its 2026 economic growth forecast to 2.3% from the previously projected 3.1%, according to the country's mid-year budget review. The decline in growth expectations stems from weaker-than-anticipated performance in the economy's main drivers during the first half of the year. The announcement illustrates the challenges facing Namibia, a nation still battling softer diamond demand due to the increasing popularity of lab-grown gems.
However, the government remains hopeful that growth will accelerate in the coming years, with a projected 3.3% growth by 2029. The government's optimism is further bolstered by Namibia's burgeoning oil sector, sparked by significant offshore discoveries that have attracted major oil companies, such as Chevron, QatarEnergy, and local firms like Trago Energy.
Finance Minister Ericah Shafudah cautioned that "key risks remain," citing "muted global demand and commodity prices, especially for diamonds, high fuel prices, the anticipated El Niño, and the outbreak of foot-and-mouth disease."
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
