Namibian deficit could reach 5.9% of GDP
By the AFREEQUE newsroom, based on Observer24
Illustrative image · Mikhail Nilov · Pexels · Licence PexelsNamibian firm Simonis Storm forecasts a public deficit of 5.6% to 5.9% of GDP for the current financial year, against the government’s forecast of 5.5%. It also expects the 2028-2029 deficit to reach 4.4% of GDP, while Namibian growth in 2026 has been lowered to 2.3%, according to its budget analysis published after its 22 October mid-year review.
Simonis Storm forecasts a Namibian budget deficit of between 5.6% and 5.9% of gross domestic product (GDP) for the current financial year, compared with the Treasury’s forecast of 5.5%. The economic analysis firm presented these estimates in its review of the 2026-2027 mid-year budget review, tabled on 22 October, reports Observer24.
For the 2027-2028 financial year, Simonis Storm expects a deficit of 5% to 5.3% of GDP, above the 4.8% anticipated by the government. Forecast Namibian growth for 2026 has been lowered from 3.1% to 2.3%, while the mining sector is expected to contract by 10.6%. Revenue and grants for the current financial year have been revised to 88.1 billion Namibian dollars, 1.5 billion less than the February estimate.
Simonis Storm also estimates that the deficit in 2028-2029 will reach 4.4% of GDP, compared with the government’s target of 3.3% set in February. It is then expected to fall to 3.5% in 2029-2030. Public spending has been reduced to 105 billion Namibian dollars, but debt interest is expected to account for 15.4 billion. Implementation delays have led to an 820 million reduction in externally funded projects.
The budget review was tabled on 22 October, the same day Namibia assessed the implementation of 8.5 billion Namibian dollars in investments.
