GDP growth slows to 1.6% in second quarter

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Namibia’s economy grew by 1.6 percent year-on-year in the second quarter of 2025, down from 2.8 percent in the first quarter and 3.3 percent in the same period of 2024, according to a new report by the First National Bank of Namibia (FNB).

FNB economist Helena Mboti said the data indicates the strain on consumers.
“Private consumption collapsed to negative 7.2 percent year-on-year in the second quarter of 2025. This sharp reversal highlights the ongoing impact of inflation, weak job creation, and elevated borrowing costs on households,” she added.

The latest figures are the country’s weakest economic performance since 2018. While mining was the only sector to record stronger growth compared to last year, most other industries underperformed.

Household spending dropped sharply by 7.2 percent, reflecting weak domestic demand. Imports also fell by 4.7 percent, while government consumption increased by 4.2 percent, investment rose by 5.0 percent, and exports expanded by 18.5 percent.