Mmegi

Non-mining supports GDP as diamond slump persists

Under pressure: While there are signs of recovery, the protracted slump in diamonds has weighed on the economy since the third quarter of last year. PIC: MORERI SEJAKGOMO
Under pressure: While there are signs of recovery, the protracted slump in diamonds has weighed on the economy since the third quarter of last year. PIC: MORERI SEJAKGOMO

All non-mining sectors of the economy recorded positive growth in the second quarter of the year, helping to limit the impact of the protracted diamond slump, as the country continues to hope for a recovery.

Statistics Botswana figures released last week indicate that real Gross Domestic Product (GDP), a measure of economic activity, slowed to a negative 0.5 percent year on year in the second quarter, after a -5.3 percent performance in the first quarter. Two successive quarters of negative economic activity are a technical recession, but for Botswana, the impact could have been steeper without the contribution of the non-mining sector.

According to the data agency, the contribution of mining and quarrying activities contracted by 16.5% in the second quarter, weighed down by base metals as well as diamonds.

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