Economy Overview
Botswana’s diamond dependent economy 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 2010-12, GDP growth slowed in 2012-14. 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 $16,600 in 2014. 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 10-15 years 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 has supported the development of Botswana's nascent 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
5.3% (2014 est.)
Labor Force
1.017 million (2014 est.)
Labor Force by Occupation
Agriculture: NA%
Industry: NA%
Services: NA%
Unemployment Rate
7.5% (2007 est.)
Population Below Poverty Line
30.3% (2003 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Distribution of Family Income Gini Index
63 (1993)
Budget
Revenues: $5.442 billion
Expenditures: $5.164 billion (2014 est.)
Public Debt
19.4% of GDP (2013 est.)
Central Bank Discount Rate
7.5% (31 December 2013)
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$1.435 billion (31 December 2013 est.)
Stock of Broad Money
$7.635 billion (31 December 2012 est.)
Stock of Domestic Credit
$1.852 billion (31 December 2013 est.)
Market Value of Publicly Traded Shares
$4.076 billion (31 December 2010 est.)
Reserves of Foreign Exchange and Gold
$7.726 billion (31 December 2013 est.)
Debt External
$2.461 billion (31 December 2013 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
6.7936 (2010 est.)
