- Growth falls sharply from 3.3% in 2024
- Manufacturing slump offsets gains in services and exports
WINDHOEK, NAMIBIA – Namibia’s economy grew 1.6% year-on-year in the second quarter of 2025, slowing from 3.3% in the same period a year earlier, the Namibia Statistics Agency (NSA) said.
In nominal terms, the size of the economy expanded to N$64.8 billion ($3.4 billion) from N$58.8 billion in 2024. Services were the main drivers of growth, led by wholesale and retail trade, education, financial services, and public administration.
“The performance during the quarter under review is mainly attributable to the tertiary industries that recorded a growth of 3.9% in real value added compared to a 2.7% decline recorded in the second quarter of 2024,” the NSA said in its quarterly report.
Wholesale and retail trade expanded 5.2%, down from 9.1% last year, while education surged 5.6% compared to 1% in 2024. Financial services grew 5.0% against 9.1% previously, and public administration and defence increased 3.7% compared with 4.3%.
The primary sector, covering agriculture, forestry, and fishing, edged up 0.1% after contracting 2.7% a year earlier, reflecting modest recovery in farming and offshore fishing.
But secondary industries dragged the overall economy, contracting 5.8% in real value compared to 2.0% growth in 2024. Manufacturing suffered the steepest decline, falling 9.7% compared with a 1.2% gain last year, underscoring persistent structural weaknesses in the industrial sector.
Spending patterns shift
On the demand side, household spending fell 7.2% after surging 26.6% in the same period of 2024, reflecting squeezed consumer incomes and higher borrowing costs. Government consumption, however, grew 4.2%, buoyed by a larger public service workforce.
Gross fixed capital formation rose 5.0%, reversing a 0.6% fall last year, driven by increased investment in machinery, transport equipment, and construction.
External trade gave the economy a lift, with exports of goods and services up 18.5% while imports shrank 4.7%, narrowing the external balance deficit.
Namibia’s growth has slowed sharply from the post-pandemic rebound, leaving the government under pressure to accelerate industrial diversification and reduce reliance on extractives and public spending. The Bank of Namibia projects overall GDP growth of around 3.7% in 2025, according to its mid-year update, though weak manufacturing remains a risk.
