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Botswana Economy Profile 2016

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Economy - overviewBotswana has maintained one of the world's highest economic growth rates since independence in 1966. Diamond mining has fueled much of the expansion and currently accounts for one quarter of GDP, approximately 85% of export earnings, and about one-third of the government's revenues. Tourism is the secondary earner of foreign exchange and many Batswana engage in subsistence farming and cattle raising. 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 $17,700 in 2015. Two major investment services rank Botswana as the best credit risk in Africa.

Botswana's economy is highly correlated with global economic trends because of its heavy reliance on a single luxury export. According to official government statistics, unemployment is 19.5%, but unofficial estimates run much higher. De Beers, a major international diamond company, signed a 10-year deal with Botswana in 2012 and moved its rough stone sorting and trading division from London to Gaborone in 2013. The move was geared to support the development of Botswana's nascent downstream diamond industry.

Following the 2008 global recession Botswana’s economy recovered in 2010. However, the Government of Botswana estimates the economy grew by only 1% in 2015. This was primarily due to the downturn in the global diamond market; water and power shortages also played a role. In October 2015 President Ian KHAMA announced a stimulus plan to boost the economy through projects in agricultural production, construction, manufacturing, and tourism development. In 2016, Botswana entered its fourth year of drought, detrimental to Botswana’s small, but vital agriculture sector.

The prevalence of HIV/AIDS is second highest in the world and threatens the country's impressive economic gains.
GDP (purchasing power parity)$34.84 billion (2015 est.)
$34.96 billion (2014 est.)
$33.88 billion (2013 est.)
note: data are in 2015 US dollars
GDP (official exchange rate)$12.86 billion (2015 est.)
GDP - real growth rate-0.3% (2015 est.)
3.2% (2014 est.)
9.9% (2013 est.)
GDP - per capita (PPP)$16,400 (2015 est.)
$16,600 (2014 est.)
$16,300 (2013 est.)
note: data are in 2015 US dollars
Gross national saving37.1% of GDP (2015 est.)
46.3% of GDP (2014 est.)
41.8% of GDP (2013 est.)
GDP - composition, by end usehousehold consumption: 48.2%
government consumption: 16.8%
investment in fixed capital: 31%
investment in inventories: -1.6%
exports of goods and services: 60.7%
imports of goods and services: -55.1% (2015 est.)
GDP - composition by sectoragriculture: 1.8%
industry: 32.9%
services: 65.3% (2015 est.)
Population below poverty line30.3% (2003 est.)
Labor force1.155 million (2015 est.)
Labor force - by occupationagriculture: NA%
industry: NA%
services: NA%
Unemployment rate20% (2013 est.)
17.8% (2009 est.)
Unemployment, youth ages 15-24total: 36%
male: 29.6%
female: 43.5% (2010 est.)
Household income or consumption by percentage sharelowest 10%: NA%
highest 10%: NA%
Distribution of family income - Gini index60.5 (2009)
Budgetrevenues: $5.078 billion
expenditures: $5.55 billion (2015 est.)
Taxes and other revenues38.8% of GDP (2015 est.)
Budget surplus (+) or deficit (-)-3.6% of GDP (2015 est.)
Public debt17% of GDP (2015 est.)
15.5% of GDP (2014 est.)
Inflation rate (consumer prices)3% (2015 est.)
4.4% (2014 est.)
Central bank discount rate6% (31 December 2015)
7.5% (31 December 2014)
Commercial bank prime lending rate7.5% (31 December 2015 est.)
9% (31 December 2014 est.)
Stock of narrow money$1.569 billion (31 December 2015 est.)
$1.388 billion (31 December 2014 est.)
Stock of broad money$8.293 billion (31 December 2013 est.)
$7.635 billion (31 December 2012 est.)
Stock of domestic credit$1.634 billion (31 December 2015 est.)
$1.272 billion (31 December 2014 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 rate-1.2% (2015 est.)
Current Account Balance$1.202 billion (2015 est.)
$2.496 billion (2014 est.)
Exports$6.66 billion (2015 est.)
$8.516 billion (2014 est.)
Exports - commoditiesdiamonds, copper, nickel, soda ash, meat, textiles
Imports$7.331 billion (2015 est.)
$7.989 billion (2014 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$7.99 billion (31 December 2015 est.)
$8.323 billion (31 December 2014 est.)
Debt - external$2.256 billion (31 December 2014 est.)
$2.43 billion (31 December 2013 est.)
Exchange ratespulas (BWP) per US dollar -
10.04 (2015 est.)
8.9761 (2014 est.)
8.9761 (2013 est.)
7.62 (2012 est.)
6.8382 (2011 est.)
Fiscal year1 April - 31 March

Source: CIA World Factbook
This page was last updated on October 8, 2016

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