Botswana Economy - 2006

Economy - overview:
Botswana has maintained one of the world's highest economic growth rates since independence in 1966. Through fiscal discipline and sound management, Botswana has transformed itself from one of the poorest countries in the world to a middle-income country with a per capita GDP of $10,000 in 2005. 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 and for 70-80% of export earnings. Tourism, financial services, subsistence farming, and cattle raising are other key sectors. On the downside, the government must deal with high rates of unemployment and poverty. Unemployment officially is 23.8%, but unofficial estimates place it closer to 40%. HIV/AIDS infection rates are the second highest in the world and threaten Botswana's impressive economic gains. An expected leveling off in diamond mining production overshadows long-term prospects.

GDP (purchasing power parity):
$16.48 billion (2005 est.)

GDP (official exchange rate):
$9.255 billion (2005 est.)

GDP - real growth rate:
3.3% (2005 est.)

GDP - per capita (PPP):
$10,000 (2005 est.)

GDP - composition by sector:
agriculture: 2.4%
industry: 46.9% (including 36% mining)
services: 50.7% (2003 est.)

Labor force:
288,400 formal sector employees (2004)

Labor force - by occupation:
agriculture: NA%
industry: NA%
services: NA%

Unemployment rate:
23.8% (2004)

Population below poverty line:
30.3% (2003)

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Distribution of family income - Gini index:
63 (1993)

Inflation rate (consumer prices):
8.3% (2005 est.)

Investment (gross fixed):
23.6% of GDP (2005 est.)

Budget:
revenues: $3.766 billion
expenditures: $3.767 billion; including capital expenditures of $NA (2005 est.)

Public debt:
7.3% of GDP (2005 est.)

Agriculture - products:
livestock, sorghum, maize, millet, beans, sunflowers, groundnuts

Industries:
diamonds, copper, nickel, salt, soda ash, potash; livestock processing; textiles

Industrial production growth rate:
3.4% (2005 est.)

Electricity - production:
891 million kWh (2004)

Electricity - consumption:
2.641 billion kWh (2004)

Electricity - exports:
0 kWh (2002)

Electricity - imports:
1.39 billion kWh (2002)

Oil - production:
0 bbl/day (2003)

Oil - consumption:
12,000 bbl/day (2003 est.)

Oil - exports:
NA bbl/day

Oil - imports:
16,000 bbl/day (2001)

Natural gas - production:
0 cu m (2003 est.)

Natural gas - consumption:
0 cu m (2003 est.)

Current account balance:
$562 million (2005 est.)

Exports:
$3.68 billion f.o.b. (2005 est.)

Exports - commodities:
diamonds, copper, nickel, soda ash, meat, textiles

Exports - partners:
European Free Trade Association (EFTA) 87%, Southern African Customs Union (SACU) 7%, Zimbabwe 4% (2004)

Imports:
$3.37 billion f.o.b. (2005 est.)

Imports - commodities:
foodstuffs, machinery, electrical goods, transport equipment, textiles, fuel and petroleum products, wood and paper products, metal and metal products

Imports - partners:
Southern African Customs Union (SACU) 74%, EFTA 17%, Zimbabwe 4% (2004)

Reserves of foreign exchange and gold:
$6.12 billion (2005 est.)

Debt - external:
$556 million (2005 est.)

Economic aid - recipient:
$73 million (1995)

Currency (code):
pula (BWP)

Exchange rates:
pulas per US dollar - 5.1104 (2005), 4.6929 (2004), 4.9499 (2003), 6.3278 (2002), 5.8412 (2001)