The domestic economy is estimated to expand marginally by 2.1% in 2026 and 2.8% in 2027, according to the Bank of Namibia’s Economic Outlook update for August 2026 released on Monday. According to the outlook, the gross domestic product is projected to improve gradually in 2026 and 2027, following weak growth in 2025. The 2026 growth estimate represents a downward revision of 0.5 percentage point relative to the March 2026 Economic Outlook update, as a deeper-than-anticipated contraction in diamond mining and softer construction activity outweigh the improved outlook for agriculture.” The central bank meanwhile said the domestic economic outlook remains subject to several downside risks from both external and domestic developments. “Globally, ongoing geopolitical tensions, as well as evolving United States policies, may contribute to volatility in commodity prices, exchange rates, and the cost of key imported inputs such as fuel,” the central bank concluded.