Namibia’s household debt surpasses GDP by N$6.5 billion
Persistent
Household debt exceeds total economic output in May
Namibia’s household debt has outstripped the nation’s gross domestic product (GDP) by N$6.5 billion, according to the latest private sector credit extension (PSCE) data for May 2025.
With total household debt reaching N$68.9 billion against a GDP of N$62.4 billion in the first quarter, the figures highlight a growing reliance on credit amid economic pressures, with households borrowing an additional N$150 million in May alone.
Simonis Storm’s analysis of the PSCE data reveals a cautious yet persistent rise in household debt, which climbed by N$166 million to N$68.9 billion in May 2025. This modest increase reflects a broader trend of restrained borrowing, driven by squeezed household incomes and soaring living costs. “The pace of credit growth underscores a cautious approach, as households navigate economic uncertainty while balancing consumption and debt obligations,” Simonis Storm said.
The moderate rise in debt was an indication of households carefully managing their consumption behaviour, Simonis Storm said.
“Households appear to be maintaining a delicate balance managing consumption and servicing existing obligations, while remaining highly selective about taking on new debt.
A key development in this month’s data is the renewed contraction in mortgage credit, which fell by 0.7% y/y, reversing the brief improvement recorded in April (0.9%),” Simonis Storm said.
Despite the decline, the mortgage book remains elevated at N$45.7 billion, pointing to a concentration of activity among financially stable households. “That said, broader participation in the housing market remains muted. Structural affordability barriers, particularly high property prices relative to income levels continue to limit access, especially for first-time and lower-income buyers.”
Growth in other loans and advances slowed to 5.9% y/y, with a marginal increase of N$64 million, according to Simonis Storm. “The trend signals greater prudence among middle-income borrowers, many of whom are navigating uncertain income prospects and erring on the side of caution.”
With total household debt reaching N$68.9 billion against a GDP of N$62.4 billion in the first quarter, the figures highlight a growing reliance on credit amid economic pressures, with households borrowing an additional N$150 million in May alone.
Simonis Storm’s analysis of the PSCE data reveals a cautious yet persistent rise in household debt, which climbed by N$166 million to N$68.9 billion in May 2025. This modest increase reflects a broader trend of restrained borrowing, driven by squeezed household incomes and soaring living costs. “The pace of credit growth underscores a cautious approach, as households navigate economic uncertainty while balancing consumption and debt obligations,” Simonis Storm said.
The moderate rise in debt was an indication of households carefully managing their consumption behaviour, Simonis Storm said.
“Households appear to be maintaining a delicate balance managing consumption and servicing existing obligations, while remaining highly selective about taking on new debt.
A key development in this month’s data is the renewed contraction in mortgage credit, which fell by 0.7% y/y, reversing the brief improvement recorded in April (0.9%),” Simonis Storm said.
Despite the decline, the mortgage book remains elevated at N$45.7 billion, pointing to a concentration of activity among financially stable households. “That said, broader participation in the housing market remains muted. Structural affordability barriers, particularly high property prices relative to income levels continue to limit access, especially for first-time and lower-income buyers.”
Growth in other loans and advances slowed to 5.9% y/y, with a marginal increase of N$64 million, according to Simonis Storm. “The trend signals greater prudence among middle-income borrowers, many of whom are navigating uncertain income prospects and erring on the side of caution.”
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