Botswana is forecasting economic growth of 3% to 4% in 2025, expecting a rebound after a contraction in 2024, driven by an improved diamond market. The country’s economy shrank by 3.3% in the first three quarters of 2024, surpassing earlier projections of a 1.7% decline.
Walter Matekane, the director of macroeconomic policy in Botswana’s finance ministry, stated that the anticipated growth will stem from a combination of factors, including a recovery in global diamond export markets and continued expansion in non-mining sectors.
Botswana’s economy is heavily reliant on diamond exports, and weak earnings from the sector in 2024 have strained government finances. Debswana, a joint venture between Botswana and De Beers, lowered its 2024 production guidance by 6 million carats to 17.9 million carats, reflecting the challenging market conditions.
The government expects a rebound in mineral revenues to reduce the budget deficit from the forecasted 6.75% of GDP in the 2024/25 fiscal year to 3.6% in 2025/26.
