Botswana Economy Profile 2013

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 half 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. Unofficial estimates place unemployment at close to 40%. 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 will support Botswana's downstream diamond industry.

GDP (purchasing power parity)

$31.49 billion (2012 est.)
$30.33 billion (2011 est.)
$28.86 billion (2010 est.)
note: data are in 2012 US dollars

GDP (official exchange rate)

$17.64 billion (2012 est.)

GDP - real growth rate

3.8% (2012 est.)
5.1% (2011 est.)
7% (2010 est.)

GDP - per capita (PPP)

$16,800 (2012 est.)
$16,400 (2011 est.)
$15,800 (2010 est.)
note: data are in 2012 US dollars

GDP - composition by sector

agriculture: 2.1%
industry: 43.7%
services: 50.2% (2012 est.)

Population below poverty line

30.3% (2003)

Labor force

1.288 million
note: formal sector employees (2012 est.)

Labor force - by occupation

agriculture: NA%
industry: NA%
services: NA%

Unemployment rate

7.5% (2007 est.)

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Distribution of family income - Gini index

63 (1993)

Investment (gross fixed)

27.6% of GDP (2012 est.)

Budget

revenues: $5.491 billion
expenditures: $5.346 billion (2012 est.)

Taxes and other revenues

31.1% of GDP (2012 est.)

Budget surplus (+) or deficit (-)

0.8% of GDP (2012 est.)

Public debt

12.9% of GDP (2012 est.)
13.4% of GDP (2011 est.)

Inflation rate (consumer prices)

6.9% (2012 est.)
8.5% (2011 est.)

Central bank discount rate

9.5% (31 December 2010 est.)
10% (31 December 2009 est.)

Commercial bank prime lending rate

10.8% (31 December 2012 est.)
11% (31 December 2011 est.)

Stock of narrow money

$1.28 billion (31 December 2012 est.)
$1.153 billion (31 December 2011 est.)

Stock of money

$1.008 billion (31 December 2008)
$1.026 billion (31 December 2007)

Stock of broad money

$7.6 billion (31 December 2012 est.)
$7.1 billion (31 December 2011 est.)

Stock of quasi money

$4.183 billion (31 December 2008)
$4.336 billion (31 December 2007)

Stock of domestic credit

$415.9 million (31 December 2012 est.)
$1.114 billion (31 December 2011 est.)

Market value of publicly traded shares

$4.107 billion (31 December 2011)
$4.076 billion (31 December 2010)
$4.278 billion (31 December 2009)

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

10.8% (2011 est.)

Current Account Balance

$711.1 million (2012 est.)
$271 million (2011 est.)

Exports

$5.887 billion (2012 est.)
$6.458 billion (2011 est.)

Exports - commodities

diamonds, copper, nickel, soda ash, meat, textiles

Imports

$5.883 billion (2012 est.)
$6.275 billion (2011 est.)

Imports - commodities

foodstuffs, machinery, electrical goods, transport equipment, textiles, fuel and petroleum products, wood and paper products, metal and metal products

Reserves of foreign exchange and gold

$8.648 billion (31 December 2012 est.)
$8.082 billion (31 December 2011 est.)

Debt - external

$1.968 billion (31 December 2012 est.)
$1.969 billion (31 December 2011 est.)

Exchange rates

pulas (BWP) per US dollar -
7.65 (2012 est.)
6.8382 (2011 est.)
6.7936 (2010 est.)
7.1551 (2009)
6.7907 (2008)

Fiscal year

1 April - 31 March