IMF forecasts lower growth for Botswana

In the April 2012 edition of its World Economic Outlook released on Tuesday, the IMF attributed the downward review to the possibility of lower diamond exports this year.

"Growth is expected to slow in Botswana to 3.3 percent this year, due in large part to weaker global demand for diamonds," the IMF said. Economic crises in the Euro zone and stagnation in the US have weakened demand for diamonds, which being luxury products, are often the first jettisoned by markets affected by economic constraints.
The IMF's forecasts echo similar projections by government, the UN and the African Development Bank, and all have been vindicated by the 40 percent slump in diamond exports in the fourth quarter of 2011.