Botswana’s economy is projected to shrink by 1.7% this year due to declining diamond sales, according to Finance Minister Ndaba Gaolathe, as reported by Rough & Polished.
Gaolathe, who also serves as Vice President, warned that reduced diamond sales, coupled with challenges like extreme weather conditions, could trigger the country’s worst economic downturn since the COVID-19 pandemic in 2020.
Earlier forecasts had predicted Botswana’s economy would grow by 4.2% this year, following a 2.7% increase in 2023. Despite the current setback, Gaolathe expressed optimism that the economy could bounce back in 2024 with growth projected at 4% to 5%.
Diamonds remain a cornerstone of Botswana’s economy, contributing about a third of government revenue and making up the bulk of its foreign currency earnings.
