Economy Overview
Botswana has maintained one of the world's highest economic growth rates since independence in 1966. However, economic growth was negative in 2009, with the industrial sector shrinking by 30%, after the global crisis reduced demand for Botswana's diamonds. Although the economy recovered in 2010, GDP growth has again slowed. Through fiscal discipline and sound management, Botswana transformed itself from one of the poorest countries in the world to a middle-income country with a per capita GDP of $16,800 in 2012. Two major investment services rank Botswana as the best credit risk in Africa. Diamond mining has fueled much of the expansion and currently accounts for more than one-third of GDP, 70-80% of export earnings, and about one-third of the government's revenues. Botswana's heavy reliance on a single luxury export was a critical factor in the sharp economic contraction of 2009. Tourism, financial services, subsistence farming, and cattle raising are other key sectors. According to official government statistics, unemployment reached 17.8% in 2009, but unofficial estimates run much higher. The prevalence of HIV/AIDS is second highest in the world and threatens Botswana's impressive economic gains. An expected leveling off in diamond production within the next two decades overshadows long-term prospects. A major international diamond company signed a 10-year deal with Botswana in 2012 to move its rough stone sorting and trading division from London to Gaborone by the end of 2013. The move may support Botswana's downstream diamond industry.
Agriculture Products
livestock, sorghum, maize, millet, beans, sunflowers, groundnuts
Industries
diamonds, copper, nickel, salt, soda ash, potash, coal, iron ore, silver, livestock processing; textiles
Industrial Production Growth Rate
-1.7% (2012 est.)country comparison to the world: 153
Labor Force
1.288 million (2012 est.)country comparison to the world: 137
Unemployment Rate
17.8% (2009 est.)country comparison to the world: 155 7.5% (2007 est.)
Population Below Poverty Line
30.3% (2003)
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Distribution of Family Income Gini Index
63 (1993)country comparison to the world: 3
Budget
Revenues: $5.508 billion
Expenditures: $5.393 billion (2012 est.)
Public Debt
17.4% of GDP (2012 est.)country comparison to the world: 134 17.2% of GDP (2011 est.)
Central Bank Discount Rate
9.5% (31 December 2010 est.)country comparison to the world: 25 10% (31 December 2009 est.)
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$1.358 billion (31 December 2012 est.)country comparison to the world: 140 $1.153 billion (31 December 2011 est.)
Stock of Broad Money
$7.6 billion (31 December 2012 est.)country comparison to the world: 114 $7.1 billion (31 December 2011 est.)
Stock of Domestic Credit
$2.111 billion (31 December 2012 est.)country comparison to the world: 131 $1.114 billion (31 December 2011 est.)
Market Value of Publicly Traded Shares
$4.44 billion (31 December 2012)country comparison to the world: 88 $4.107 billion (31 December 2011) $4.076 billion (31 December 2010)
Reserves of Foreign Exchange and Gold
$7.628 billion (31 December 2012 est.)country comparison to the world: 78 $8.082 billion (31 December 2011 est.)
Debt External
$2.443 billion (31 December 2012 est.)country comparison to the world: 142 $2.396 billion (31 December 2011 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
pulas (BWP) per US dollar -7.62 (2012 est.) 6.84 (2011 est.) 6.79 (2010 est.) 7.16 (2009) 6.79 (2008)
