Botswana Economy Profile 2009

Economy - overview

Botswana has maintained one of the world's highest economic growth rates since independence in 1966, though growth fell below 5% in 2007-08. Through fiscal discipline and sound management, Botswana has transformed itself from one of the poorest countries in the world to a middle-income country with a per capita GDP of $13,300 in 2008. Two major investment services rank Botswana as the best credit risk in Africa. Diamond mining has fueled much of the expansion and currently accounts for more than one-third of GDP and for 70-80% of export earnings. Tourism, financial services, subsistence farming, and cattle raising are other key sectors. On the downside, the government must deal with high rates of unemployment and poverty. Unemployment officially was 23.8% in 2004, but unofficial estimates place it closer to 40%. HIV/AIDS infection rates are the second highest in the world and threaten Botswana's impressive economic gains. An expected leveling off in diamond mining production overshadows long-term prospects.

GDP (purchasing power parity)

$27.06 billion (2008 est.)
$26.28 billion (2007 est.)
$25.17 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$13.46 billion (2008 est.)

GDP - real growth rate

2.9% (2008 est.)
4.4% (2007 est.)
5.1% (2006 est.)

GDP - per capita (PPP)

$13,900 (2008 est.)
$13,700 (2007 est.)
$13,400 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 1.6%
industry: 52.6% (including 36% mining)
services: 45.8% (2008 est.)

Population below poverty line

30.3% (2003)

Labor force

685,300 formal sector employees (2007)

Labor force - by occupation

agriculture: NA%
industry: NA%
services: NA%

Unemployment rate

7.5% (2007 est.)

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Distribution of family income - Gini index

63 (1993)

Investment (gross fixed)

23.4% of GDP (2008 est.)

Budget

revenues: $4.326 billion
expenditures: $4.808 billion (2008 est.)

Public debt

5.9% of GDP (2008 est.)
8.6% of GDP (2004 est.)

Inflation rate (consumer prices)

12.6% (2008 est.)
7.1% (2007 est.)

Central bank discount rate

NA% (31 December 2008)
14.5% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
16.22% (31 December 2007)

Stock of money

$NA (31 December 2008)
$1.026 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$4.336 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$NA (31 December 2007)

Industries

diamonds, copper, nickel, salt, soda ash, potash; livestock processing; textiles

Industrial production growth rate

-2.4% (2008 est.)

Electricity - production

979 million kWh (2006 est.)

Electricity - production by source

fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

2.574 billion kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

1.959 billion kWh (2007 est.)

Oil - production

0 bbl/day (2007 est.)

Oil - consumption

11,640 bbl/day (2006 est.)

Oil - imports

14,500 bbl/day (2005)

Oil - exports

0 bbl/day (2005)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2007 est.)

Natural gas - consumption

0 cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

$938.3 million (2008 est.)
$2.434 billion (2007 est.)

Agriculture - products

livestock, sorghum, maize, millet, beans, sunflowers, groundnuts

Exports

$4.904 billion (2008 est.)
$5.158 billion (2007 est.)

Exports - commodities

diamonds, copper, nickel, soda ash, meat, textiles

Imports

$4.463 billion (2008 est.)
$3.447 billion (2007 est.)

Imports - commodities

foodstuffs, machinery, electrical goods, transport equipment, textiles, fuel and petroleum products, wood and paper products, metal and metal products

Reserves of foreign exchange and gold

$9.119 billion (31 December 2008 est.)
$9.79 billion (31 December 2007 est.)

Debt - external

$422 million (31 December 2008 est.)
$408 million (31 December 2007 est.)

Market value of publicly traded shares

$3.556 billion (31 December 2008)
$5.887 billion (31 December 2007)
$3.947 billion (31 December 2006)

Economic aid - recipient

$70.89 million (2005)

Currency (code)

BWP

Currency (code)

pula (BWP)

Exchange rates

pulas (BWP) per US dollar - 6.7907 (2008 est.), 6.2035 (2007), 5.8447 (2006), 5.1104 (2005), 4.6929 (2004)

Fiscal year

1 April - 31 March