The government of Namibia has projected a modest improvement in economic growth and a narrowing fiscal deficit in its 2026/27 national budget, Finance Minister Ericah Shafudah told Parliament, as reported by Reuters.
According to Reuters’ coverage of the budget speech, Namibia’s real gross domestic product is expected to expand by about 3.1 percent in 2026, up from roughly 2.9 percent in 2025, supported by resilience in mining and trade despite headwinds from weaker global diamond prices. The fiscal deficit is projected to narrow to approximately 5.5 percent of GDP in the fiscal year beginning April 1, compared with 6.6 percent in the current year, with further consolidation targeted over the medium term, Polity.org reported, citing official budget documents.
Reuters further noted that public debt is forecast to reach about 65.2 percent of GDP in the current fiscal year before stabilising around 67.5 percent in the medium term, with the government maintaining a longer-term objective of reducing the ratio toward 60 percent. The reports also referenced Namibia’s longer-term ambition to commence crude oil production by 2030, a development officials say could significantly alter the country’s economic outlook if successfully realised.
Polity highlighted that the budget framework emphasizes balancing fiscal consolidation with targeted public spending to sustain growth amid global economic uncertainty.
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