Namibia Downgraded to Lower-Middle Income Status by World Bank

Namibia Downgraded to Lower-Middle Income Status by World Bank. The World Bank has officially reclassified Namibia as a lower-middle income country in its latest income classifications released on Tuesday, covering the period from 1 July 2025 to 30 June 2026.

The annual classification is based on Gross National Income (GNI) per capita data from the previous year. For Namibia, a decline in economic performance in 2024 contributed to the downgrade from its previous upper-middle income status. According to the World Bank, Namibia is the only country globally to move down a category in this year’s review.

In its statement, the World Bank attributed the country’s economic slowdown to reduced activity in the mining and quarrying sectors. The report cited a sharp fall in demand for diamonds, which significantly affected overall economic growth. Namibia’s GDP, which had surged by 19.3% in 2023, contracted by 1.2% in 2024.

The recategorisation reflects changing economic realities and could have implications for Namibia’s access to development assistance, investor perception, and funding opportunities from multilateral institutions. While the classification does not directly affect eligibility for World Bank funding, it may influence the country’s positioning in global development frameworks.

The World Bank’s income classification system is used internationally to benchmark a country’s economic standing. It categorises countries into four groups: low income, lower-middle income, upper-middle income, and high income.

Namibia’s downgrade places it alongside countries with GNI per capita between $1,146 and $4,515, according to current World Bank thresholds.