Namibia Q1 GDP Grows 2% on Services Rebound

Namibia’s economy grew 2% in the first quarter of 2026, even as mining and manufacturing weakened. The reading points to a services-led recovery, with nominal output rising to N$70.9bn from N$66.2bn a year earlier, according to Namibia Observer.

Services carried the quarter

The Namibia Q1 GDP result was driven by tertiary industries, which expanded 5.1% in real terms. Wholesale and retail trade grew 9.3%, while financial services rose 7.2%.

Health services increased 6.4%. Education grew 4.6%, and public administration rose 3.7%. That mix shows broader momentum across consumer-facing and state-linked services.

The quarterly performance also points to a more balanced recovery than one built on a single sector. However, the pace remained modest, and the weak production base kept the overall expansion contained.

Mining and manufacturing still weighed on output

Secondary industries contracted 3.1% in the quarter. Manufacturing fell 5.9% in real value added, after a 1.2% decline in the same period of 2025.

Primary industries were also under pressure, shrinking 5.7%. Mining and quarrying dropped 12.2%, reflecting lower diamond and gold production. That decline remains the clearest drag on the quarter.

On the spending side, household consumption rose only 1.4%. That was well below the 8.4% recorded in the first quarter of 2025. Government consumption increased 4.5%, supported by a larger public payroll.

Investment offered a brighter signal. Gross Fixed Capital Formation rose 3.4%, after a 4.8% contraction a year earlier. Higher spending on machinery, transport equipment, and construction supported the rebound.

External trade added another mixed message. Exports of goods and services increased 4.1%, while imports grew 4.6%. The faster rise in imports widened the goods and services deficit.

For investors, the data suggest an economy that is still expanding, but not yet firing evenly across sectors. Services and investment are providing support, while Namibia’s mining sector and manufacturing remain a drag. The next indicators to watch are household demand, credit growth, and whether capital spending turns into a deeper project pipeline.

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