The Namibian economy experienced a significant acceleration in growth, expanding by 4.8% year-on-year in the second quarter of 2026. This represents a substantial increase from the 1.7% growth recorded during the same quarter in 2025. According to the Namibia Statistics Agency (NSA), the economy was valued at N$70.6 billion during the quarter, up from N$65.3 billion in the corresponding quarter of 2025.
The tertiary industries played a crucial role in driving economic growth, expanding by 6.1% in real value added. This is a notable increase from the 3.8% growth recorded in the second quarter of 2025. Within the tertiary sector, health recorded the strongest growth, expanding by 17.6% compared to 2.7% in the previous year. Wholesale and retail trade also showed significant growth, increasing by 9.0% compared to 6.5% in 2025.
The NSA reported that financial services activities recovered, recording growth of 5.5% compared to a 0.7% contraction in the second quarter of 2025. Hotels and restaurants grew by 5.5%, while real estate and professional services activities expanded by 5.2%. These growth rates indicate a positive trend in the tertiary sector. Information and communication expanded by 8.2%, although this was down from 12.3% in the corresponding quarter of 2025.
Primary industries also returned to growth, expanding by 3.0% in real value added. This is a significant improvement from the 2.4% contraction recorded in the second quarter of 2025. The NSA attributed this growth mainly to agriculture and forestry, as well as fishing and fish processing on board. Agriculture and forestry grew by 17.8%, while fishing and fish processing on board expanded by 2.8%.
The secondary industries showed signs of improvement, growing by 0.8% in real value added during the quarter. This is a notable increase from the 1.5% contraction recorded in the corresponding quarter of 2025. Manufacturing was the main driver of growth, increasing by 3.9% compared to a 7.9% contraction in the previous year.
On the expenditure side, private final consumption expenditure increased by 11.6% in the second quarter, reversing a 5.9% decline recorded in the same quarter of 2025. Government final consumption expenditure also increased, growing by 6.6% compared to 4.1% in the previous year. Gross fixed capital formation recorded double-digit growth, increasing by 14.4% compared to a 4.4% decline in the second quarter of 2025.
However, the external balance deficit expanded due to a slow growth in exports of goods and services, which increased by only 0.3% during the quarter. In contrast, imports accelerated by 12.9%. The NSA's data indicates a mixed performance across various sectors, with some areas showing significant growth while others remain a challenge. The country's economic growth is expected to continue, driven by the tertiary sector and improvements in primary and secondary industries.
Key points
- Namibia's economy grew 4.8% year-on-year in Q2 2026.
- Tertiary industries drove economic growth, expanding by 6.1%.
- Primary industries returned to growth, expanding by 3.0%.
