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’s overdependence on extractive industries has placed it in a precarious position during the Covid-19 contagion, as demand for diamonds collapsed during the height of the pandemic. Looking forward, it is expected that recovery will hinge on the rough diamonds market. As lockdown restrictions ease in the United States and Europe, jewellery sales should improve, buoying Botswana’s exports and fiscal revenues. The presence of the more infectious South African strain of Covid-19 poses a risk to the forecast, as the rebound in tourism-related sectors could be delayed. (Source: Botswana Quarterly Update, published February 2021.)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
-10.2 |
|
Consumer Price Index (% change y-o-y, avg) |
1.9 |
|
Current Account Balance (as a % of GDP) |
-10.1 |
|
Real GDP (annual % change) |
-8.1 |
|
GDP per Capita, US$ |
6,658.4 |
|
Import Cover (months) |
9.5 |
|
Population, million |
2.4 |
| Total External Debt (as a % of GDP) |
15.5 |