Africa-Press – Botswana. Botswana’s real Gross Domestic Product (GDP) decreased by 0.3 percent in the first quarter of 2025, a moderation compared to the 5.2 percent decline recorded during the same period in 2024.
This is according to Statistics Botswana’s latest Gross Domestic Product First Quarter 2025 report released this week.
Weakness in key sectors
The report attributes the GDP contraction to declines in real value added by several key industries, including Diamond Traders (down 36.2%), Water & Electricity (29.0%), Mining & Quarrying (7.7%), Agriculture, Forestry & Fishing (3.4%), and Transport & Storage (1.3%).
All other industries recorded positive growth of at least 0.1 percent.
On a quarter-on-quarter basis, real GDP decreased by 0.1 percent compared to the final quarter of 2024.
Non-mining GDP up
Despite the overall contraction, non-mining GDP grew by 2.2 percent during the period under review, though this was lower than the 2.7 percent growth recorded in the first quarter of 2024.
The Mining and Quarrying industry recorded a 7.7 percent drop in real value added, mainly driven by reductions in soda ash and diamond production.
“Diamond production in carats declined by 8.1 percent in the first quarter of 2025, largely reflecting a continued production response to prolonged weak demand,” the report states.
Slight recovery in Manufacturing
It adds that Soda Ash output was constrained due to a shift in the timing of the annual maintenance shutdown.
Manufacturing grew by 0.2 percent, recovering from a 2.9 percent contraction in the same quarter last year. The rebound was driven by sub-sector growth in Diamond Cutting & Polishing (1.2%), Basic Metals (2.7%), and Textiles, Leather & Leather Products (2.6%).
Wholesale & Retail Trade also showed resilience, with real value added increasing by 4.6 percent, up from 3.3 percent in the corresponding quarter of 2024.
Diamond Traders hit hard
Diamond Traders continued to post significant losses, although the rate of decline has moderated. “Diamond Traders recorded a negative growth of 36.2 percent as opposed to a decrease of 46.0 percent recorded in the corresponding quarter of the previous year,” the report notes.
It attributes the slump to continued pressure from lab-grown diamonds on the value of natural stones.
Modest ICT growth
The Information and Communications sector grew by 0.9 percent, down from 1.8 percent in Q1 2024. Telecommunications Services led the sector’s performance, with a 1.5 percent rise in real value added.
The ICT industry includes Publishing, Broadcasting, Telecommunications, and Computer Programming and Information Services.
For More News And Analysis About Botswana Follow Africa-Press
