STAFF WRITER
Bank of Namibia Governor, Ebson Uanguta says Namibia’s economy experienced economic growth in the quarter to date as a result of contractions in agriculture, fishing, mining and manufacturing sectors.
Announcing the first monetary policy statement of this year on Wednesday Uanguta said the slow down in the four key sectors suggest subdued economic activity in 2025 relative to 2024.
“Consequently, the estimated growth for 2025 is anticipated to be lower than previously projected in the Bank of Namibia’s December 2025 Economic Outlook,” Uanguta said.
The central bank governor said domestic inflation remains well contained.
“In this regard, average inflation fell to a post- pandemic low of 3.5 percent in 2025 from 4.2 percent in 2024, slightly undershooting our prior forecast of 3.6 percent. The slower inflation outcome was primarily ascribed to disinflationary pressures in transport, housing and alcoholic beverages,” he said.
Uanguta said the most recent inflation print indicates a further deceleration to 2.9% in January 2026 from 3.6% in October 2025 recorded at the previous MPC meeting.
“Looking ahead, inflation is projected to remain steady at 3.5% in 2026 before moderating to 3.4% in 2027. The 2026 forecast has been revised downward by 0.3 percentage point, on assumptions of lower oil and food prices alongside a stronger currency,” he said.
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