Namibia trimmed its 2026 economic growth forecast to 2.3%, from 3.1% projected in February, after performance in the economy’s main drivers was weaker than expected in the first half of the year, the southern African country’s mid-year budget review showed.
The announcement highlights the challenges facing an economy still grappling with softer diamond demand due to the rise of lab-grown gems. But the government remains optimistic that growth will pick up over the next few years, reaching 3.3% in 2029.
The longer-term outlook could be boosted by Namibia’s emerging oil sector, following a string of major offshore discoveries that have attracted oil giants such as Chevron, QatarEnergy, and Namibian firms, including Trago Energy. “Key risks remain,” said Finance Minister Ericah Shafudah, 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.”
