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Economy ::Botswana

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):

$27.11 billion (2008 est.) country comparison to the world: 111 $26.35 billion (2007 est.)

$25.23 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.) country comparison to the world: 129 4.4% (2007 est.)

5.1% (2006 est.)

GDP - per capita (PPP):

$13,900 (2008 est.) country comparison to the world: 83 $13,800 (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.)

Labor force:

685,300 formal sector employees (2007) country comparison to the world: 146

Labor force - by occupation:

agriculture: NA%

industry: NA%

services: NA%

Unemployment rate:

7.5% (2007 est.) country comparison to the world: 96

Population below poverty line:

30.3% (2003)

Household income or consumption by percentage share:

lowest 10%: NA%

highest 10%: NA%

Distribution of family income - Gini index:

63 (1993) country comparison to the world: 4

Investment (gross fixed):

23.4% of GDP (2008 est.) country comparison to the world: 62

Budget:

revenues: $4.326 billion

expenditures: $4.808 billion (2008 est.)

Public debt:

5.9% of GDP (2008 est.) country comparison to the world: 118 8.6% of GDP (2004 est.)

Inflation rate (consumer prices):

12.6% (2008 est.) country comparison to the world: 175 7.1% (2007 est.)

Central bank discount rate:

15% (31 December 2008) country comparison to the world: 17 14.5% (31 December 2007)

Commercial bank prime lending rate:

16.54% (31 December 2008) country comparison to the world: 34 16.22% (31 December 2007)

The 2009 CIA World Factbook

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