Namibia’s economy expanded by 4.8% in the second quarter of 2026, marking its fastest growth pace since early 2024. The strong performance signals a robust recovery despite ongoing challenges in the mining sector.
The Namibia Statistics Agency reported that nominal GDP reached N$70.6 billion. Growth accelerated sharply from the 2.0% recorded in the preceding quarter, driven largely by sustained momentum in the tertiary sector.
Services remained the primary engine of economic expansion, surging 6.1%. The health sector led with a 17.6% jump, followed closely by robust activity in wholesale, retail trade, and information technology.
Primary industries advanced by 3%, heavily supported by an exceptional 17.8% expansion in agriculture and forestry. This was fueled by a massive 28.5% surge in crop production following favorable rainfall.
However, the mining and quarrying sector contracted by 3.1%. The decline was primarily dragged down by lower extraction volumes in uranium, diamonds, and metal ores during the quarter.
On the demand side, private consumption rebounded aggressively by 11.6%, reversing previous contractions. Gross fixed capital formation also expanded by 14.4%, highlighting renewed business investment in machinery and transport equipment.
This growth occurs against a backdrop of tight monetary conditions. The Bank of Namibia recently raised its repo rate to 6.75% to protect the currency peg and manage import surges.
Fiscal policy remains focused on consolidation under the 2026/2027 National Budget. The government aims to narrow the fiscal deficit to 5.5% of GDP while offering capital allowances to stimulate investment.
Meanwhile, the government is advancing a dual energy strategy. Offshore oil developments in the Orange Basin are proceeding simultaneously alongside green hydrogen projects to fuel long-term industrialization.
