WINDHOEK, April 13 (Xinhua) -- Namibia's economy is projected to grow by 2.6 percent in 2026 and 2.9 percent in 2027, according to the March Economic Outlook Update released by the Bank of Namibia (BoN) on Monday.

The outlook for 2026 and 2027 was revised downward by 1.2 and 1.4 percentage points, respectively, compared with the December 2025 report, mainly due to weaker-than-expected output in the mining sector, the bank said in a statement.

"The domestic economic outlook remains subject to several downside risks from both external and domestic developments. Regionally, the outbreak of foot-and-mouth disease in neighboring countries, particularly in Botswana and South Africa, poses a risk to livestock production and export earnings," the central bank said.

According to the central bank, the downgrade was driven by a significant contraction in metal ore production and continued weakness in diamond mining, which weighed on overall economic activity.

Meanwhile, the BoN also noted that growth is expected to be supported by improvements in secondary and tertiary sectors, including construction, electricity and water supply, wholesale and retail trade, financial services, as well as public administration and defense.

Uranium mining is expected to remain a key contributor to growth, supported by increased production from existing operations, said the bank.

It added that the economy is expected to maintain a moderate growth path over the medium term, although risks remain in the mining sector. ■