IMF projects economic growth to reach 2.7% by 2027

CHAMWE KAIRA

Namibia’s real gross domestic product (GDP) growth is projected to increase from 1.7% in 2025 to 2.0% in 2026 and 2.7% in 2027, according to the International Monetary Fund’s (IMF) latest economic forecasts for sub-Saharan Africa issued this week.

The projections indicate a gradual improvement in Namibia’s economic growth over the three-year period, although the country is expected to grow below the regional average of 4.5% annually between 2025 and 2027.

The Bank of Namibia projects Namibia’s real GDP growth rate to reach 2.1% in 2026 and 2.8% in 2027, according to its August 2026 Economic Outlook update.

The IMF forecasts show significant differences in economic performance across the 45 countries covered in sub-Saharan Africa, with some economies expected to record strong growth while others face prolonged contractions.

South Sudan is projected to record the region’s highest growth rate in 2025, at 41.4%, before growth slows to 10.5% in 2026 and 3.9% in 2027.

Ethiopia is forecast to maintain growth of 9.2% in both 2025 and 2026, while Uganda’s economy is projected to accelerate from 6.7% in 2025 to 9.9% by 2027.

Rwanda is expected to maintain growth above 7.2% throughout the forecast period, while Benin’s growth is projected to range between 6.8% and 8.1%.

In contrast, Equatorial Guinea is forecast to remain in economic contraction, with real GDP declining by 5.8% in 2025, 1.7% in 2026 and 1% in 2027.

South Africa, one of the region’s major economies, is projected to record relatively weak growth of between 1% and 1.3% over the same period.

Botswana and Mozambique are also expected to face economic challenges, with their economies projected to contract by 0.7% and 0.2%, respectively, in 2025 before recovering in subsequent years.

The regional outlook places Namibia’s projected growth below the sub-Saharan African average throughout the forecast period.

While Namibia’s growth rate is expected to improve by one percentage point between 2025 and 2027, the regional benchmark remains at 4.5% in each of the three years.

The projections highlight the differing growth trajectories across sub-Saharan Africa, with countries such as Ethiopia and Uganda expected to record stronger expansion, while Namibia’s recovery is forecast to remain gradual.