Namibia: Economic and Political Overview
After years of robust growth, the Namibian economy entered into recession in 2019 and 2020, impacted by the dissipation of temporary stimuli, a drop in raw material prices, a severe drought, and then the COVID-19 pandemic. The economy returned to growth in 2021 (3.5%) and 2022 (4.6%), supported by robust diamond, gold, and uranium production, and a gradual recovery in tourism and manufacturing. Namibia’s economic growth slowed to an estimated 3.7% in 2024, down from 4.4% in 2023, mainly due to reduced mining activity and severe drought. According to the World Bank, growth is projected to rise to 3.9% in 2025 and average 4% over the medium term. The non-mineral economy is expected to strengthen, particularly in pandemic-affected sectors like tourism, while household consumption is set to remain resilient.
Namibia has experienced a period of exceptional growth masking increasing macroeconomic imbalances, a slowdown in productivity, and a decline in external competitiveness. The fiscal deficit is forecast to rise from 2.4% of GDP in FY23/24 to 3% in FY24/25, as increased spending on public wages, drought relief, and capital projects outweighs revenue gains from record SACU transfers and strong tax collection. Government spending is expected to rise modestly in 2025, including limited growth in the public wage bill. However, with SACU revenues projected to decline, the fiscal deficit is forecast to widen to 4.9% of GDP in FY2025/26. Namibia’s public debt ratio – estimated at 66.7% of GDP in 2024, from 66.1% one year earlier - is projected to decline over the forecast horizon, supported by steady economic growth and the Government’s plan to repay at least two-thirds of the USD 750 million Eurobond maturing in October 2025 using savings from its sinking fund. Meanwhile, the current account deficit widened from 14.8% of GDP in 2023 to an estimated 16% in 2024, driven by falling diamond prices and increased imports of consumer goods. The deficit is expected to stay elevated due to strong oil and gas exploration-related imports, mostly funded by FDI. Gross international reserves covered 4.5 months of imports in 2024 and are projected to remain above 3 months in 2025, though the Eurobond repayment will temporarily reduce reserves before a gradual recovery. Inflation eased below the midpoint of the central bank’s 3–6% target range, driven by slower growth in food and transport prices. It is expected to remain around 4% in 2025, though external price shocks pose a risk. As inflation stabilised, the Bank of Namibia cut its policy rate by a total of 100 basis points in four steps between July 2024 and February 2025 (data IMF).
Namibia is one of the countries with the highest inequalities: the country more than halved the poverty rate between 1993 and 2024, but poverty incidence remains relatively high for an upper-middle-income country. With moderate growth and persistent joblessness, poverty is expected to stay elevated at 19.6%—around 606,000 people—in 2025, based on the USD 2.15 per day international poverty line (2017 PPP). Namibia’s structurally high unemployment, estimated at 19.1% in 2024, is partly driven by limited private investment outside the natural resource sector, slow job creation, and skills shortages. A large share of the workforce remains engaged in low-skilled, informal sector employment (World Bank data). Overall, the country’s GDP per capita (PPP) was estimated at USD 11,730 in 2024 by the IMF.
| Main Indicators | 2023 (E) | 2024 (E) | 2025 (E) | 2026 (E) | 2027 (E) |
| GDP (billions USD) | 12.35 | 13.19 | 14.36 | 15.22 | 15.89 |
| GDP (Constant Prices, Annual % Change) | 4.2 | 3.1 | 4.2 | 3.4 | 2.5 |
| GDP per Capita (USD) | 4,216 | 4,410 | 4,711 | 4,900 | 5,022 |
| General Government Gross Debt (in % of GDP) | 66.1 | 66.7 | 62.5 | 61.9 | 62.7 |
| Inflation Rate (%) | 5.9 | 4.6 | 4.5 | 4.5 | 4.5 |
| Current Account (billions USD) | -1.83 | -2.10 | -2.44 | -2.59 | -2.28 |
| Current Account (in % of GDP) | -14.8 | -15.9 | -17.0 | -17.0 | -14.4 |
Source: IMF – World Economic Outlook Database, October 2021
Namibia is one of the most important diamond exporters and the 3rd-largest uranium producer in the world. Agriculture accounts for 7.7% of the Namibian economy and employs 21.5% of the workforce (World Bank, latest data available), although around 70% of the population depends directly or indirectly on agriculture for their income and livelihood. The country's arid climate and geographic conditions do not favour farming, and the crop variety is rather limited: Namibia is the driest country in Sub-Saharan Africa and depends largely on groundwater (only 2% of Namibia’s land receives sufficient rainfall to grow crops). Of Namibia's entire land area, 47% is allocated for agricultural activities, with one percent of this portion categorized as arable land (FAO). Major crops include maize, millet, and sorghum. The livestock sector is productive and export-oriented, with beef accounting for the largest share of livestock exports. Fishing is another important component of the primary sector (accounting for almost 25% of all activities), as Namibian waters are rich in fish.
The secondary sector contributes 30% of the GDP and employs about 16.3% of the active population. It is characterized by the predominance of the mining industry thanks to the country's rich subsoil. Major mining products include diamonds, uranium, lead, copper, and arsenic. Diamonds account for almost 70% of all mining exports. While Namibian diamond production is less significant than neighbouring countries (Botswana, South Africa, and Zimbabwe), the country is among the world's first in value per unit. Namibia also has the largest marine mine in the world. Offshore diamond production is increasing (it provides 75% of total production according to Coface), while onshore extraction is decreasing due to the exhaustion of terrestrial deposits. Additionally, Namibia is the third-largest producer of uranium in the world and is home to two mines capable of producing 10% of the world's output (Husab's uranium mine is the third-largest surface uranium mine in the world). Food processing (beef and fish) is the largest non-mining component of the secondary sector. According to the World Bank, manufacturing accounts for around 11% of GDP. In 2024, Namibia produced 2.234 million carats of rough diamonds, marking a 4% decline from the 2.327 million carats recorded in 2023 (De Beers).
Services account for 53.4% of GDP and employ 62.2% of the working population. The main sub-sectors within services include tourism, financial services, retail and wholesale trade, transport and communication, and public administration. Namibia's diverse landscapes and extensive wildlife offer significant tourism assets and as such, tourism is a major source of income, its direct contribution to GDP being around 10%. Following a slowdown due to the COVID-19 crisis, in 2024, the number of tourists returned to its pre-pandemic level, as per the Hospitality Association of Namibia. The banking sector comprises nine authorized banking institutions, including seven commercial banking institutions, a branch of a foreign bank, and a representative office (Bank of Namibia).
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
| Employment By Sector (in % of Total Employment) | 21.5 | 16.3 | 62.2 |
| Value Added (in % of GDP) | 7.7 | 30.0 | 53.4 |
| Value Added (Annual % Change) | -3.4 | 9.2 | 2.7 |
Source: World Bank, Latest Available Data. Because of rounding, the sum of the percentages may be smaller/greater than 100%.
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The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.}}
Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation
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Latest Update: May 2025
