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Botswana Economy Profile 2013

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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 $16,800 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 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)$32.06 billion (2012 est.)
$30.88 billion (2011 est.)
$29.39 billion (2010 est.)
note: data are in 2012 US dollars
GDP (official exchange rate)$17.62 billion (2012 est.)
GDP - real growth rate3.8% (2012 est.)
5.1% (2011 est.)
7% (2010 est.)
GDP - per capita (PPP)$17,100 (2012 est.)
$16,700 (2011 est.)
$16,000 (2010 est.)
note: data are in 2012 US dollars
Gross national saving34.7% of GDP (2012 est.)
39.9% of GDP (2011 est.)
37.3% of GDP (2010 est.)
GDP - composition, by end usehousehold consumption: 39.8%
government consumption: 20.5%
investment in fixed capital: 30%
investment in inventories: 5.4%
exports of goods and services: 35.7%
imports of goods and services: -43.6%
(2012 est.)
GDP - composition by sectoragriculture: 2.1%
industry: 45%
services: 52.9% (2011 est.)
Population below poverty line30.3% (2003)
Labor force1.288 million (2012 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)
Investment (gross fixed)30% of GDP (2012 est.)
Budgetrevenues: $5.508 billion
expenditures: $5.393 billion (2012 est.)
Taxes and other revenues31.3% of GDP (2012 est.)
Budget surplus (+) or deficit (-)0.7% of GDP (2012 est.)
Public debt14.4% of GDP (2012 est.)
17% of GDP (2011 est.)
Inflation rate (consumer prices)7.5% (2012 est.)
8.5% (2011 est.)
Central bank discount rate9.5% (31 December 2010 est.)
10% (31 December 2009 est.)
Commercial bank prime lending rate11% (31 December 2012 est.)
11% (31 December 2011 est.)
Stock of narrow money$1.361 billion (31 December 2012 est.)
$1.153 billion (31 December 2011 est.)
Stock of broad money$7.6 billion (31 December 2012 est.)
$7.1 billion (31 December 2011 est.)
Stock of domestic credit$1.45 billion (31 December 2012 est.)
$1.114 billion (31 December 2011 est.)
Market value of publicly traded shares$4.44 billion (31 December 2012)
$4.107 billion (31 December 2011)
$4.076 billion (31 December 2010)
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 rate0% (2012 est.)
Current Account Balance$231.3 million (2012 est.)
$271 million (2011 est.)
Exports$6.259 billion (2012 est.)
$6.458 billion (2011 est.)
Exports - commoditiesdiamonds, copper, nickel, soda ash, meat, textiles
Imports$6.938 billion (2012 est.)
$6.275 billion (2011 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$7.839 billion (31 December 2012 est.)
$8.082 billion (31 December 2011 est.)
Debt - external$2.437 billion (31 December 2012 est.)
$2.396 billion (31 December 2011 est.)
Exchange ratespulas (BWP) per US dollar -
7.6179 (2012 est.)
6.8382 (2011 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 February 21, 2013