An International Monetary Fund (IMF) staff team, led by Mr. Jaroslaw Wieczorek, visited Windhoek, Namibia from February 25 to March 10, 2025. The purpose of the visit was to conduct discussions for the 2025 Article IV Consultation with Namibia.
Mr. Wieczorek commented on Namibia's economic situation: "Namibia's real GDP growth is estimated to have slowed to 3.5 percent in 2024 due to weak global demand for diamonds and a sharp contraction in agriculture. Growth is projected to accelerate to 4.0 percent in 2025, as agriculture recovers, and is expected to average about 3 percent over the medium term."
He noted that unemployment remains a significant issue: "Unemployment, reported at 36.9 percent in the latest (2023) labor force survey, remains a major challenge, underpinning the authorities’ strengthened focus on job creation."
Regarding food security challenges faced during a recent drought, Mr. Wieczorek stated: "Nearly half of Namibia’s population faced high levels of acute food insecurity during the recent drought. While conditions are expected to improve in 2025, public support for those who continue to experience food insecurity should continue."
On inflation trends and monetary policy adjustments by the Bank of Namibia (BoN), he said: "Inflation has eased below the midpoint of the central bank’s target range (3–6 percent), reflecting a moderation in the growth of food and transport prices and it is expected to remain at about 4 percent in 2025." He added that as inflation normalized, BoN lowered its policy rate by a cumulative 100 basis points between July 2024 and February 2025.
The external current account deficit was also addressed: "The external current account deficit increased from 14.8 percent of GDP in 2023 to an estimated 16.0 percent of GDP in 2024." This increase was attributed primarily to diamond price slumps and increased consumer goods imports.
Discussing fiscal matters, Mr. Wieczorek highlighted: "The fiscal deficit is expected to widen from 2.4 percent of GDP in FY23/24 to 3.0 percent of GDP in FY24/25." He emphasized maintaining fiscal discipline while supporting growth and job creation.
To enhance economic prospects, structural reforms were suggested: "Broader structural reforms are vital to support private sector-led growth and inclusion," including reducing business costs through streamlined visa processes and liberalizing land use policies.
Mr. Wieczorek concluded by thanking Namibian authorities for their cooperation during this mission.