GDP growth rebounds to 4.8%

Recovery
Agriculture rebound and stronger services lift economic growth
Ogone Tlhage
  • 7 Hours Ago

Namibia's economy grew by 4.8% in the second quarter of 2026, marking a sharp improvement from the 1.7% recorded in the same quarter last year, according to the Namibia Statistics Agency (NSA).


The economy was valued at N$70.6 billion in nominal terms during the quarter, compared with N$65.3 billion in the second quarter of 2025.


The latest national accounts show that services remained the main contributor to economic activity, while agriculture staged a strong recovery and manufacturing returned to growth.


The recovery was, however, uneven, with mining and quarrying and construction contracting during the quarter.


The tertiary sector, which includes services, expanded by 6.1% in real terms, compared with 3.8% a year earlier.


Health was the fastest-growing services industry, expanding by 17.6%. Wholesale and retail trade grew by 9%, while information and communication increased by 8.2%.


Financial services, hotels and restaurants, and real estate and professional services also recorded growth of 5.5%, 5.5% and 5.2%, respectively.


Agriculture rebounds


Primary industries grew by 3% in the second quarter, reversing a 2.4% contraction recorded in the same period last year.


Agriculture and forestry was a major contributor to the improvement, growing by 17.8%. Fishing and fish processing also expanded, by 2.8%.


The NSA attributed the stronger performance in agriculture and forestry to a significant increase in estimated crop production.


The fishing sector benefited from higher volumes of fish landed during the quarter.


The recovery extended to manufacturing, which grew by 3.9%, compared with a 7.9% contraction in the second quarter of 2025.


Mining and quarrying, however, contracted by 3.1%, while construction continued to record a decline.


The contrasting performances highlight the different trends across Namibia's primary and secondary industries during the quarter.


Household spending increases


Household spending also strengthened during the quarter.


Private final consumption expenditure increased by 11.6% in real terms, reversing a 5.9% contraction recorded in the second quarter of 2025.


According to the NSA, the increase was reflected in higher sales volumes at supermarkets and clothing retailers, as well as increased imports of finished goods.


Government consumption also increased, growing by 6.6% compared with 4.1% in the corresponding quarter of 2025.


Investment activity strengthened as well. Gross fixed capital formation increased by 14.4%, reversing a 4.4% decline recorded in the second quarter of 2025.


The increase was mainly driven by investment in machinery and transport equipment.


Imports rise faster than exports


The stronger domestic demand was accompanied by a substantial increase in imports.


Exports of goods and services grew by 0.3% during the quarter, while imports increased by 12.9%.


The faster growth in imports contributed to a widening external balance deficit during the quarter.


The trade figures also point to a notable difference between domestic spending and export performance, with the increase in economic activity accompanied by stronger demand for imported goods and services.