Diamond slump widens trade deficit

The gap between the values of exports and imports had averaged a deficit of P570 million in the eight months before September 2011, with the trade balance recording only its second surplus since late 2008 in June.The lower deficits were buoyed by record rough and polished diamond exports which reached about P27 billion before a flattening of global demand and prices from September 2011 onwards.

Statistics Botswana figures released this week indicate that the flattening of diamond exports widened the trade deficit to P1.43 billion and P1.46 billion between September and November from a moderate deficit of P333 million in August. Should the level of deficits seen between September and November hold in December, the fourth quarter will record the heaviest trade shortfall seen in 2011, higher than the P3.14 billion experienced in the first quarter.