In-Depth Analysis
Botswana
Botswana has an excellent track record of political and macroeconomic stability as well as a sound regulatory environment. The economy has a heavy reliance on the diamond and tourism industries, which were adversely affected by the Covid-19 pandemic. The country has some potential to expand its coal mining, energy, and transport industries.
Botswana is expected to benefit from the global economic recovery, with real GDP expanding by 7.1% in 2021, stronger than our previous forecast of 6.5%. Promising recent diamond sales by De Beers have prompted us to revise our growth expectations higher. Combined with the robust economic recovery in the US and China, Botswana’s merchandise exports are set to rise this year. Risks to our forecast remain balanced: Downside risks include the tardy vaccination of the population and frequent lockdowns given the prevalence of the Delta variant in the region, while upside risks include better consumer appetite for jewellery and healthier commodity prices. (Source: Botswana Quarterly Update, published August 2021.)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
-11.5 |
|
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) |
16.0 |