Welcome to Africanews

Please select your experience

Watch Live

Business

business

Botswana's economy grows 1.8 percent in Q1 2016

Botswana's economy grows 1.8 percent in Q1 2016

Botswana

Botswana’s economy grew 1.8 percent quarter-on-quarter in the three months to end-March versus a 4.9 percent expansion in the fourth quarter of 2015, data from the statistics office showed.

On a year-on-year basis, gross domestic product (GDP) growth was at 2.8 percent in Q1 after contracting by 1.9 percent in Q4.

Earlier this year, the International Monetary Fund (IMF) projected Botswana’s economy to grow by 3.7 percent this year after an estimated contraction of 0.3 percent in 2015.

A gradual economic recovery is projected in the next three years, based on an expected gradual increase in diamond prices and fiscal stimulus.

GDP growth is estimated to have turned slightly negative in 2015 owing to a decline in the global demand for diamonds and copper,” the IMF said in a statement in March.

“A gradual economic recovery is projected in the next three years, based on an expected gradual increase in diamond prices and fiscal stimulus.”

The Southern African nation’s economy has been reeling from a drop in commodity prices which has impacted negatively on the country’s mining industry.

The sector contributes about 24 per cent of Botswana’s GDP.