Reduced Diamond Production in Botswana Slows Economic Growth

According to the IMF (International Monetary Fund), the economic growth of Botswana - which is largely financially dependent on diamond production (accounting for 40% of government revenues) - will increase by only 1% in 2024, compared to 2.7% in 2023.

The IMF sees the crisis in the international diamond industry (due to falling demand and prices) and the corresponding decline in diamond production in Botswana as one of the reasons for this slowed economic growth of the country.

To stimulate growth and employment, the IMF recommends greater private sector participation, export diversification and a more efficient public sector.

In the medium term, Botswana's economic growth should converge to 4%, supported by the resumption of diamond mining, the IMF predicts.

Picture credits: Botswana Tourism Organisation