In-Depth Analysis
Botswana
Botswana has an excellent track record of political and macroeconomic stability. The economy relies heavily on the diamond mining, public services, and retail industries. The expansion of existing diamond mines, new copper production coming online, and the Economic Recovery and Transformation Plan will drive growth over the medium term.
Real GDP expanded by 15.3% y-o-y in H1, mainly on the back of base effects and a strong rebound in diamond demand. We expect mineral exports will continue to drive growth in the medium term, despite a moderation in commodity prices during this period thanks to the expansion of the country’s diamond mines and new copper mines coming online. President Mokgweetsi Masisi’s government scored some small achievements in the past quarter by getting the country closer to being removed from the EU anti-money laundering list. (Source: Botswana Quarterly Update, published November 2021.)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
-8.5 |
|
Consumer Price Index (% change y-o-y, avg) |
1.9 |
|
Current Account Balance (as a % of GDP) |
-11.1 |
|
Real GDP (annual % change) |
-8.4 |
|
GDP per Capita, US$ |
6,436.4 |
|
Import Cover (months) |
7.82 |
|
Population, million |
2.4 |
| Total External Debt (as a % of GDP) |
10.6 |