In-Depth Analysis
Botswana
Botswana remains a low political risk country and, despite some internal political rumblings, remains one of Africa's most stable democracies. A fall in diamond revenues is pushing authorities to speed up economic diversification.
Botswana’s economy is back on track after expanding by 5.0% y-o-y in H1 2018. Therefore, we revised our economic growth forecast for this year upwards. The most significant development over the past quarter is the fact that the local government now expects fiscal revenue to be lower than initially projected, as a result of announced maintenance projects at Debswana which will lead to lower mineral revenues. Furthermore, the current account balance deteriorated during H1, mainly due a substantial worsening in the trade account. The pula also endured some instability as a result of rand volatility in neighbouring South Africa.s. (Source: Botswana Quarterly Update, published December 2018.)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-3.6 |
|
Consumer Price Index (% change y-o-y, avg) |
3.3 |
|
Current Account Balance (as a % of GDP) |
9.1 |
|
Real GDP (annual % change) |
4.5 |
|
GDP per Capita, US$ |
8,163 |
|
Import Cover (months) |
13.4 |
|
Population, million |
2.3 |
| Total External Debt (as a % of GDP) |
12.1 |