Economic Outlook Media Release December 2024

ECONOMIC OUTLOOK - DECEMBER 2024 
THE NAMIBIAN ECONOMY IS EXPECTED TO GROW BY 3.5 PER CENT IN 2024 

 1. Introduction 

The Bank of Namibia released the Economic Outlook update for December 2024. The domestic economy is estimated to expand by 3.5 per cent in 2024 and 4.0 per cent in 2025. 

 2. Global and Regional Outlook 

Global economic growth is projected to remain unchanged between 2024 and 2025. World GDP growth is projected to moderate downwards from 3.3 per cent in 2023 to 3.2 per cent for both 2024 and 2025. According to the IMF’s World Economic Outlook (WEO) for October 2024, the anticipated moderation in growth is attributed to sustained inflationary pressures and increased geopolitical risks. The projected global growth for 2024 remained unchanged from the July 2024 WEO update, while the growth rate for 2025 was revised downwards by 0.1 percentage points. 

Growth in emerging markets and developing economies (EMDEs) is projected at 4.2 per cent for 2024 and 2025, with a slowdown from 4.4 per cent in 2023. The anticipated moderation in growth for EMDEs reflects a sustained slowdown in the region’s two largest countries, China and India. Growth in the Chinese economy is projected to slow down gradually, mainly due to persistent weaknesses in the real estate sector and low consumer confidence. In India, growth is expected to moderate to 7.0 per cent in 2024 and 6.5 per cent in 2025, from 8.2 per cent in 2023. The downward moderation in India’s growth is attributed to normalisation, as the 2023 growth rate was influenced by base effects.