Botswana Economic Outlook
Recently released GDP data revealed that the economy lost some steam at the start of the year, growing 4.8% in Q1 on a year-on-year basis, down from the 6.5% expansion recorded in Q4 2017. Despite the slowdown, the pace of growth remained robust, driven by stronger private consumption growth and a solid rebound in fixed investment. Meanwhile, a sizeable decline in exports of diamonds—which account for the vast majority of Botswana’s total exports—weighed on the overall first-quarter performance. Weak external sector activity is likely to have persisted in Q2, with exports contracting by nearly a quarter in April, mainly reflecting decreased shipments of diamonds.
Botswana Economic Growth
Despite a subdued start to the year, export activity is expected to pick up on the heels of higher diamond demand and remain a driver of growth going forward. Higher public spending in line with the government’s national development plan will also provide support to the non-mining economy. FocusEconomics panelists see GDP growing 4.4% in 2018, up 0.3 percentage points from last month’s estimate, and 4.6% in 2019.
Botswana Economy Data
Read more on: https://www.focus-economics.com/countries/botswana