Diamond Slump Hits Botswana's GDP

(IDEX Online) - Botswana's government is forecasting a contraction of almost 1 per cent in its economy for 2025, amid an ongoing slump in diamond sales.

"The macroeconomic outlook for the whole of 2025 remains fragile, with GDP projected to contract by 0.9 per cent," said finance minister Ndaba Gaolathe (pictured). "This forecast reflects continued weakness in the diamond sector."

Its GDP contracted by 3.0 per cent in 2024, following on from 2.7 per cent growth the previous year.

In the February budget Gaolathe optimistically forecast a 3.3 per cent growth in GDP.

Rough diamond sales account for more than a third of its GDP, almost all export earnings, and 40 per cent of the government's revenues.

Global credit ratings agency Moody's and S&P have both downgraded Botswana's economy in recent months as production and sales fell.