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1/25/2006


 

Botswana Economy

Botswana has maintained one of the world's highest economic growth rates since independence in 1966. 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 $10,100 in 2005. 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 is 23.8%, 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 overshadow long-term prospects.

GDP (purchasing power parity):$16.64 billion (2005 est.)
GDP (official exchange rate):$9.594 billion (2005 est.)
GDP - real growth rate:4.5% (2005 est.)
GDP - per capita: purchasing power parity - $10,100 (2005 est.)

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