Botswana Economy - 2005

Economy - overview:
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 $9,200 in 2004. 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 - $15.05 billion (2004 est.)

GDP - real growth rate:
3.5% (2004 est.)

GDP - per capita:
purchasing power parity - $9,200 (2004 est.)

GDP - composition by sector:
agriculture: 4%
industry: 44% (including 36% mining)
services: 52% (2003 est.)

Labor force:
264,000 formal sector employees (2000)

Labor force - by occupation:
NA

Unemployment rate:
23.8% (2004 est.)

Population below poverty line:
47% (2002 est.)

Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA

Inflation rate (consumer prices):
7% (2004 est.)

Investment (gross fixed):
25.5% of GDP (2004 est.)

Budget:
revenues: $3.735 billion
expenditures: $3.743 billion, including capital expenditures of NA (2004 est.)

Public debt:
8.6% of GDP (2004 est.)

Agriculture - products:
livestock, sorghum, maize, millet, beans, sunflowers, groundnuts

Industries:
diamonds, copper, nickel, salt, soda ash, potash; livestock processing; textiles

Industrial production growth rate:
4.4% (2004 est.)

Electricity - production:
930 million kWh (2002)

Electricity - consumption:
1.89 billion kWh (2002)

Electricity - exports:
0 kWh (2002)

Electricity - imports:
1.025 billion kWh (2002)

Oil - production:
0 bbl/day (2001 est.)

Oil - consumption:
16,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Current account balance:
$337 million (2004 est.)

Exports:
$2.94 billion f.o.b. (2004 est.)

Exports - commodities:
diamonds, copper, nickel, soda ash, meat, textiles

Exports - partners:
European Free Trade Association (EFTA) 87%, Southern African Customs Union (SACU) 7%, Zimbabwe 4% (2000)

Imports:
$2.255 billion f.o.b. (2004 est.)

Imports - commodities:
foodstuffs, machinery, electrical goods, transport equipment, textiles, fuel and petroleum products, wood and paper products, metal and metal products

Imports - partners:
Southern African Customs Union (SACU) 74%, EFTA 17%, Zimbabwe 4% (2000)

Reserves of foreign exchange and gold:
$5.7 billion (2004 est.)

Debt - external:
$531 million (2004 est.)

Economic aid - recipient:
$73 million (1995)

Currency (code):
pula (BWP)

Exchange rates:
pulas per US dollar - 4.6929 (2004), 4.9499 (2003), 6.3278 (2002), 5.8412 (2001), 5.1018 (2000)