Botswana Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

Until the beginning of the global recession in 2008, Botswana maintained one of the world's highest economic growth rates since its independence in 1966. Botswana recovered from the global recession in 2010, but only grew modestly until 2017, primarily due to a downturn in the global diamond market, though water and power shortages also played a role. Through fiscal discipline and sound management, Botswana has transformed itself from one of the poorest countries in the world five decades ago into a middle-income country with a per capita GDP of approximately $18,100 in 2017. Botswana also ranks as one of the least corrupt and best places to do business in Sub-Saharan Africa.

 

Because of its heavy reliance on diamond exports, Botswana’s economy closely follows global price trends for that one commodity. Diamond mining fueled much of Botswana’s past economic expansion and currently accounts for one-quarter of GDP, approximately 85% of export earnings, and about one-third of the government's revenues. In 2017, Diamond exports increased to the highest levels since 2013 at about 22 million carats of output, driving Botswana’s economic growth to about 4.5% and increasing foreign exchange reserves to about 45% of GDP. 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.

 

Tourism is a secondary earner of foreign exchange and many Batswana engage in tourism-related services, subsistence farming, and cattle rearing. According to official government statistics, unemployment is around 20%, but unofficial estimates run much higher. The prevalence of HIV/AIDS is second highest in the world and threatens the country's impressive economic gains.

Real GDP (purchasing power parity)

$37.72 billion (2020 est.)

$40.95 billion (2019 est.)

$39.75 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

2.4% (2017 est.)

4.3% (2016 est.)

-1.7% (2015 est.)

Real GDP per capita

$16,000 (2020 est.)

$17,800 (2019 est.)

$17,600 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$18.335 billion (2019 est.)

Inflation rate (consumer prices)

2.7% (2019 est.)

3.2% (2018 est.)

3.2% (2017 est.)

Credit ratings

Moody's rating: A2 (2020)

Standard & Poors rating: BBB+ (2020)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 1.8% (2017 est.)

industry: 27.5% (2017 est.)

services: 70.6% (2017 est.)

GDP - composition, by end use

household consumption: 48.5% (2017 est.)

government consumption: 18.4% (2017 est.)

investment in fixed capital: 29% (2017 est.)

investment in inventories: -1.8% (2017 est.)

exports of goods and services: 39.8% (2017 est.)

imports of goods and services: -33.9% (2017 est.)

Agricultural products

milk, roots/tubers, vegetables, sorghum, beef, game meat, watermelons, cabbages, goat milk, onions

Industries

diamonds, copper, nickel, salt, soda ash, potash, coal, iron ore, silver; beef processing; textiles

Industrial production growth rate

-4.2% (2017 est.)

Labor force

1.177 million (2017 est.)

Labor force - by occupation

agriculture: NA

industry: NA

services: NA

Unemployment rate

20% (2013 est.)

17.8% (2009 est.)

Youth unemployment rate (ages 15-24)

total: 42%

male: 39.2%

female: 45.6% (2020 est.)

Population below poverty line

19.3% (2009 est.)

Gini Index coefficient - distribution of family income

53.3 (2015 est.)

63 (1993)

Household income or consumption by percentage share

lowest 10%: NA

highest 10%: NA

Budget

revenues: 5.305 billion (2017 est.)

expenditures: 5.478 billion (2017 est.)

Budget surplus (+) or deficit (-)

-1% (of GDP) (2017 est.)

Public debt

14% of GDP (2017 est.)

15.6% of GDP (2016 est.)

Taxes and other revenues

30.5% (of GDP) (2017 est.)

Fiscal year

1 April - 31 March

Current account balance

$2.146 billion (2017 est.)

$2.147 billion (2016 est.)

Exports

$6.16 billion (2019 est.)

$7.53 billion (2018 est.)

note: Data are in current year dollars and do not include illicit exports or re-exports.

Exports - partners

India 21%, Belgium 19%, United Arab Emirates 19%, South Africa 9%, Israel 7%, Hong Kong 6%, Singapore 5% (2019)

Exports - commodities

diamonds, insulated wiring, gold, beef, carbonates (2019)

Imports

$7.44 billion (2019 est.) note: data are in current year dollars

$7.31 billion (2018 est.) note: data are in current year dollars

Imports - partners

South Africa 58%, Namibia 9%, Canada 7% (2019)

Imports - commodities

diamonds, refined petroleum, cars, delivery trucks, electricity (2019)

Reserves of foreign exchange and gold

$7.491 billion (31 December 2017 est.)

$7.189 billion (31 December 2016 est.)

Debt - external

$2.187 billion (31 December 2017 est.)

$2.421 billion (31 December 2016 est.)

Exchange rates

pulas (BWP) per US dollar -

10.90512 (2020 est.)

10.81081 (2019 est.)

10.60446 (2018 est.)

10.1263 (2014 est.)

8.9761 (2013 est.)

NOTE: The information regarding Botswana on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Botswana 2022 information contained here. All suggestions for corrections of any errors about Botswana 2022 should be addressed to the CIA or the source cited on each page.