Namibia Downgraded from Upper Middle to Lower Middle Income Country by World Bank
Namibia has been downgraded from an upper-middle-income country to a lower-middle-income country by the World Bank, effective July 1, 2025.
This reclassification makes Namibia the only country to move down a category in the World Bank’s latest income classification update.
The downgrade is attributed to a significant adjustment in the country’s population data by the United Nations Population Division, which led to a 12.9% decrease in the Atlas Gross National Income per capita. Additionally, a sharp decline in the mining and quarrying sector, particularly in diamond production, contributed to the slower GDP growth.
The sector contracted by 1.2% in 2024, down from 19.3% growth in 2023, due to weak global demand for diamonds.
Despite the downgrade, Namibia’s economy showed resilience with a 3.7% GDP growth in 2024, albeit a slowdown from 4.4% in 2023.
Inflation also decreased from 6.6% in 2023 to 3.3% in 2024. The World Bank’s income classification system categorizes countries into four groups: low, lower-middle, upper-middle, and high-income countries, based on the previous year’s Gross National Income per capita.
The reclassification may have implications for Namibia’s access to development assistance, investor perception, and funding opportunities from multilateral institutions.
The World Bank’s classification system is used internationally to benchmark a country’s economic standing and guide economic policy and planning.
