Botswana Economic Outlook
A stable and resource-rich economy:
Botswana is one of Africa’s most stable and prosperous economies, underpinned by a strong democratic tradition and prudent macroeconomic management. The country’s economy is heavily dependent on diamonds, which account for around 80% of export earnings and roughly a third of GDP. Despite this reliance, Botswana has maintained one of Africa’s highest GDP per capita levels, driven by sound economic policies and low corruption.
Diversification and industrial policies:Recognizing the risks of over-reliance on diamonds, the government has pushed diversification initiatives in tourism, financial services, and manufacturing. Efforts to develop a knowledge-based economy and support local industries are ongoing, including investments in infrastructure, education, and technology. Botswana has also sought to expand its financial sector by positioning itself as a regional banking and fintech hub.
Macroeconomic stability and fiscal prudence:Botswana has maintained a history of strong fiscal management, with low public debt and robust foreign exchange reserves. The country’s sovereign wealth fund, the Pula Fund, helps cushion against external shocks. Inflation has generally been well-contained, though it spiked in 2022 due to global supply chain disruptions before stabilizing in 2023. The government’s conservative fiscal approach has ensured economic resilience in the face of downturns.
Botswana’s economic outlook:Botswana’s economy is expected to maintain steady growth. Strong institutions, good governance, and regional trade integration will support Botswana’s economic prospects in the coming years. However, structural challenges remain, and further developing non-mining sectors will be key to ensuring long-term prosperity.
Botswana's Macroeconomic Analysis:
Nominal GDP of USD 19.7 billion in 2023.
Nominal GDP of USD 19.4 billion in 2024.
GDP per capita of USD 7,381 compared to the global average of USD 10,589.
GDP per capita of USD 7,136 compared to the global average of USD 10,589.
Average real GDP growth of 3.9% over the last decade.
Average real GDP growth of 2.6% over the last decade.
Sector Analysis
In 2022, services accounted for 59.4% of overall GDP, manufacturing 5.6%, other industrial activity 33.4%, and agriculture 1.6%. Looking at GDP by expenditure, private consumption accounted for 42.9% of GDP in 2023, government consumption 28.9%, fixed investment 30.3%, and net exports -2.1%.International trade
In 2023, manufactured products made up 86.3% of total merchandise exports, mineral fuels 0.7%, food 1.9%, ores and metals 10.7% and agricultural raw materials 0.0%, with other categories accounting for 0.4% of the total. In the same period, manufactured products made up 61.8% of total merchandise imports, mineral fuels 20.5%, food 16.2%, ores and metals 0.7% and agricultural raw materials 0.8%, with other goods accounting for 0.0% of the total. Total exports were worth USD 5.90 billion in 2023, while total imports were USD 6.30 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 3.9% in the decade to 2023. To read more about GDP growth in Botswana, go to our dedicated page.
Fiscal policy
Botswana's fiscal deficit averaged 2.5% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 20.5% in the decade to 2023. For more information on Botswana's unemployment click here.
Inflation
Inflation averaged 4.4% in the decade to 2024. Go to our Botswana inflation page for extra insight.
Monetary Policy
Botswana's monetary policy rate ended 2024 at 1.90%, down from 7.50% a decade earlier. See our Botswana monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the pula weakened by 31.7% vs the U.S. dollar. For more info on the pula, click here.
Economic situation in Botswana
Severe drought and a sharp slump in global diamond demand derailed activity in 2024. The economy contracted 3.3% annually in Q1–Q3, curbed by an over one-fifth decline in mining and a sharper fall in exports. In Q4, momentum likely remained depressed as diamond shipments fell for the eighth consecutive quarter, albeit less sharply than in Q3, boding ill for public coffers and the external sector; diamonds made up around 80% of all exports in 2023. Moreover, drought will have continued to hit agricultural and industrial output in Q4. On the flip side, in Q4 credit to the private sector gained steam and inflation eased, supporting household budgets. Shifting to 2025, record rainfall in March drove widespread flooding and disrupted economic activity. More positively, Botswana struck a marketing deal with the British-South African mining firm De Beers in February to stimulate diamond demand.Botswana Economic Forecasts
Projections out to 2034.43 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 9 expert analysts.
Want to get insight on the economic outlook for Botswana in the coming years? FocusEconomics collects projections out to 2034 on 43 economic indicators for Botswana from a panel of 9 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Botswana economy. To download a sample report on the Botswana's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.