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Botswana Economy Profile 2014

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Economy - overviewBotswana 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 $16,400 in 2013. 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.
GDP (purchasing power parity)$34 billion (2013 est.)
$32.71 billion (2012 est.)
$31.4 billion (2011 est.)
note: data are in 2013 US dollars
GDP (official exchange rate)$15.53 billion (2013 est.)
GDP - real growth rate3.9% (2013 est.)
4.2% (2012 est.)
6.1% (2011 est.)
GDP - per capita (PPP)$16,400 (2013 est.)
$15,900 (2012 est.)
$15,500 (2011 est.)
note: data are in 2013 US dollars
Gross national saving33.7% of GDP (2013 est.)
28.9% of GDP (2012 est.)
41.1% of GDP (2011 est.)
GDP - composition, by end usehousehold consumption: 51.6%
government consumption: 18.3%
investment in fixed capital: 34.1%
investment in inventories: -1.2%
exports of goods and services: 47%
imports of goods and services: -49.8%
(2013 est.)
GDP - composition by sectoragriculture: 1.9%
industry: 35.7%
services: 62.4% (2013 est.)
Population below poverty line30.3% (2003)
Labor force1.308 million (2013 est.)
Labor force - by occupationagriculture: NA%
industry: NA%
services: NA%
Unemployment rate17.8% (2009 est.)
7.5% (2007 est.)
Unemployment, youth ages 15-24total: 13.6%
male: 13.2%
female: 14% (2000)
Household income or consumption by percentage sharelowest 10%: NA%
highest 10%: NA%
Distribution of family income - Gini index63 (1993)
Budgetrevenues: $5.04 billion
expenditures: $4.952 billion (2013 est.)
Taxes and other revenues32.4% of GDP (2013 est.)
Budget surplus (+) or deficit (-)0.6% of GDP (2013 est.)
Public debt17.9% of GDP (2013 est.)
17.4% of GDP (2012 est.)
Inflation rate (consumer prices)6.1% (2013 est.)
7.5% (2012 est.)
Central bank discount rate9.5% (31 December 2010 est.)
10% (31 December 2009 est.)
Commercial bank prime lending rate10% (31 December 2013 est.)
11% (31 December 2012 est.)
Stock of narrow money$1.517 billion (31 December 2013 est.)
$1.358 billion (31 December 2012 est.)
Stock of broad money$8.293 billion (31 December 2013 est.)
$7.635 billion (31 December 2012 est.)
Stock of domestic credit$1.38 billion (31 December 2013 est.)
$2.111 billion (31 December 2012 est.)
Market value of publicly traded shares$4.588 billion (31 December 2012 est.)
$4.107 billion (31 December 2011)
$4.076 billion (31 December 2010 est.)
Agriculture - productslivestock, sorghum, maize, millet, beans, sunflowers, groundnuts
Industriesdiamonds, copper, nickel, salt, soda ash, potash, coal, iron ore, silver; livestock processing; textiles
Industrial production growth rate7.2% (2013 est.)
Current Account Balance$1.375 billion (2013 est.)
-$795.2 million (2012 est.)
Exports$7.569 billion (2013 est.)
$6.011 billion (2012 est.)
Exports - commoditiesdiamonds, copper, nickel, soda ash, meat, textiles
Imports$7.389 billion (2013 est.)
$7.918 billion (2012 est.)
Imports - commoditiesfoodstuffs, machinery, electrical goods, transport equipment, textiles, fuel and petroleum products, wood and paper products, metal and metal products
Reserves of foreign exchange and gold$7.933 billion (31 December 2013 est.)
$7.628 billion (31 December 2012 est.)
Debt - external$2.416 billion (31 December 2013 est.)
$2.443 billion (31 December 2012 est.)
Exchange ratespulas (BWP) per US dollar -
8.732 (2013 est.)
7.6181 (2012 est.)
6.7936 (2010 est.)
7.1551 (2009)
6.7907 (2008)
Fiscal year1 April - 31 March

Source: CIA World Factbook
Unless otherwise noted, information in this page is accurate as of August 23, 2014