Namibia's government has lowered its 2025 economic growth forecast to 3.3%, from a 4.5% estimate given when the main budget was presented in March, its finance minister said on Tuesday.

In a mid-year budget review, Finance Minister Ericah Shafudah said the downward revision reflected a weaker performance in secondary industries, where output growth is expected to slow to 1.9% from 3% in 2024, largely due to an anticipated contraction in manufacturing.

She said manufacturing activity had been weighed down by lower diamond processing, as well as reduced cement and blister copper production.

Namibia's central bank last week cut its main lending rate by 25 basis points to 6.50% to try to stimulate the sluggish economy.

 

(Reporting by Nyasha Nyaungwa; Writing by Sfundo Parakozov; Editing by Alexander Winning)