Botswana’s economy expands by 4.1% q/q in Q2 2013

By bne IntelliNews October 7, 2013

Botswana's gross domestic product (GDP) rose by a real 4.1% q/q in the second quarter of 2013, following a 2.1% contraction in the first quarter, the Central Statistics Office said. On an annual basis, the real economic growth in the world’s top diamond producer by value, rose to 7.9% in Q2 from 3.3% in both Q1 2013 and Q2 2012. The estimated GDP at current prices in Q2 was BWP 32.821bn (EUR 2.8bn), up 16.8% compared to Q1.

The substantial improvement in the economy was attributed to the mining sector, which expanded by 15.6% y/y, followed by the financial and business services sector, which grew by 7.7% y/y, the public sector, which rose by 6.6% y/y, and the personal and social services sector, which grew by 6.2% y/y, the statistics office said, adding that all other sectors also recorded a growth of more than 2% y/y. The increase in real value added of the mining sector reflected a 19.2% increase in diamond production, as the leading diamond producer, Debswana Diamond Company, a 50/50 joint venture between the government and global diamond major De Beers, recovered better grades at its Orapa and Jwaneng mines. Botswana’s economy is highly dependent on diamond exports. The mining sector’s contribution to GDP increased to 26.9% in Q2 from 19.4% in Q1.

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