Botswana Economy 2008

Economy - overview:
Botswana has maintained one of the world's highest economic growth rates since independence in 1966, though growth slowed to 4.7% annually in 2006-07. 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 more than $11,000 in 2006. 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):
$24.14 billion (2007 est.)

GDP (official exchange rate):
$10.46 billion (2007 est.)

GDP - real growth rate:
4.7% (2007 est.)

GDP - per capita (PPP):
$14,700 (2007 est.)

GDP - composition by sector:
agriculture: 1.6%
industry: 51.5% (including 36% mining)
services: 46.9% (2006 est.)

Labor force:
288,400 formal sector employees (2004)

Labor force - by occupation:
agriculture: NA%
industry: NA%
services: NA%

Unemployment rate:
23.8% (2004)

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)

Inflation rate (consumer prices):
7.2% (2007 est.)

Investment (gross fixed):
19.5% of GDP (2007 est.)

Budget:
revenues: $4.886 billion
expenditures: $3.756 billion (2007 est.)

Public debt:
6.4% of GDP (2007 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:
4.5% (2007 est.)

Electricity - production:
912 million kWh (2005)

Electricity - consumption:
2.602 billion kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
1.754 billion kWh (2005)

Oil - production:
0 bbl/day (2005)

Oil - consumption:
12,000 bbl/day (2005 est.)

Oil - exports:
0 bbl/day (2004)

Oil - imports:
13,490 bbl/day (2004)

Oil - proved reserves:
0 bbl (1 January 2006 est.)

natural gas - production:
0 cu m (2005 est.)

natural gas - consumption:
0 cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
0 cu m (1 January 2006 est.)

Current account balance:
$2.231 billion (2007 est.)

Exports:
$4.798 billion f.o.b. (2007 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% (2006)

Imports:
$2.766 billion f.o.b. (2007 est.)

Imports - partners:
Southern African Customs Union (SACU) 74%, EFTA 17%, Zimbabwe 4% (2006)

Economic aid - recipient:
$70.89 million (2005)

Reserves of foreign exchange and gold:
$9.629 billion (31 December 2007 est.)

Debt - external:
$513 million (31 December 2007 est.)

Market value of publicly traded shares:
$3.947 billion (2006)

Currency (code):
pula (BWP)

Exchange rates:
pulas per US dollar - 6.2035 (2007), 5.8447 (2006), 5.1104 (2005), 4.6929 (2004), 4.9499 (2003)