Botswana: Economic Outline

Economic Indicators

Botswana is a country which has shown the most dynamic growth in the world since the 1960s, mainly due to the exploitation of its enormously rich diamond mines (the sector contributes to almost a third of the GDP and represents 80% of foreign exchange). Hit by the economic crisis, the country has experienced slowed down substantially, with real GDP growth in 2008 remaining at 3.1%, but undergoing a very brutal shock in 2009, when the economy shrunk by 3.7%. With the resumption of activity, growth increased quickly in 2010, reaching 8.4% and should remain on a slightly lower level in the coming years.

The economic policy priority is the diversification of the economy, in order to reduce dependence on the diamond and public sectors. The expansion of the mining sector and the development of services, especially the creation of “hubs” in the health, education, innovation, financial services and tourism sectors are planned. A budget revival program that depends on the financial support of the African Development Bank and the World Bank has been launched. The struggle against inflation is also a priority.

Botswana suffers from a high unemployment rate, lack of skilled labor, a growing rate of people infected with HIV/AIDS, significant inequalities and a high level of poverty.

Main Indicators	2009	2010	2011	2012 (e)	2013 (e)
GDP (billions USD)	11.53	14.87	16.39	17.51	19.04
GDP (Constant Prices, Annual % Change)	-4.9	7.2e	6.2	5.3	7.1
GDP per Capita (USD)	6,370e	8,117	8,844e	9,338	10,036
General Government Gross Debt (in % of GDP)	16.1	13.2e	15.7e	14.1	12.5
Inflation Rate (%)	8.1	7.0	7.8e	6.2	5.1
Current Account (billions USD)	-0.67	-0.73	-0.71	-0.29	0.08
Current Account (in % of GDP)	-5.8e	-4.9	-4.3	0.4	-

Source: IMF - World Economic Outlook Database - Last Available Data.

Note: (e) Estimated Data

Monetary Indicators	2008	2009	2010
Foreign Debt (million USD)	434	1,617	-
Botswanan Pula (BWP) - Average Annual Exchange Rate For 1 USD	6.83	7.16	6.79

Source: World Bank - Last Available Data.

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Main Sectors of Industry

Breakdown of Economic Activity By Sector	Agriculture	Industry	Services
Employment By Sector (in % of Total Employment)	29.9	15.2	54.7
Value Added (in % of GDP)	2.9	45.3	51.9
Value Added (Annual % Change)	-22.7	42.0	-7.0