Botswana
Botswana has an excellent track record of political and macroeconomic stability as well as a well-developed mining sector and sound regulatory environment. The economy has a heavy reliance on diamonds and tourism, but potential exists in the coal mining, energy and transport sectors.
We expect real GDP growth will slow to 3.8% this year from 4.4% in 2018, mainly due to a decline in diamond production, reduced government capital expenditure, and drought conditions. An expected global economic growth slowdown and continued trade frictions will put a damper on exports in 2019-20. We expect the October general elections will be a close affair, but that the ruling Botswana Democratic Party (BDP) will hold on to power despite the fresh challenge from the Botswana Patriotic Front which is being backed by the former president (and BDP leader) Ian Khama. Going forward we expect a more acrimonious political discourse. (Source: Botswana Annual Country Profile, published September 2019.)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-2.5 |
|
Consumer Price Index (% change y-o-y, avg) |
3.2 |
|
Current Account Balance (as a % of GDP) |
1.9 |
|
Real GDP (annual % change) |
4.4 |
|
GDP per Capita, US$ |
8,241.4 |
|
Import Cover (months) |
10.9 |
|
Population, million |
2.3 |
| Total External Debt (as a % of GDP) |
8.8 |