Recession fears loom as diamonds squeeze economy to Q1 slump

Ear to the ground: Finance Minister, Peggy Serame, will be monitoring trends and forecasts within and outside the country to see where the economy will land this year PIC: KENNEDY RAMOKONE
Ear to the ground: Finance Minister, Peggy Serame, will be monitoring trends and forecasts within and outside the country to see where the economy will land this year PIC: KENNEDY RAMOKONE

The local economy contracted by 5.3 percent in the first quarter of 2024 compared to the same quarter in 2023, sparking concerns that the protracted diamond slump could develop into a recession.

A recession is economically defined as a sustained period of weak or negative growth in real GDP (output) that is accompanied by a significant rise in the unemployment rate. The most common definition of recession used in the media is a ‘technical recession’ in which there have been two consecutive quarters of negative growth in real GDP.

Should the current economic slowdown deteriorate into a recession, it would be the first since 2020 and a knock to the country’s ambitions of reaching high-income status by 2036.

Editor's Comment
CoA brings sanity to DIS/DCEC long-standing feud

This decision follows the raiding of the office of the former Director General of the DCEC, Tymon Katlholo early 2022 and his staff officer by the DIS operatives who reportedly took files that they had targeted.After all back and forth arguments, the CoA has set the record straight giving an invaluable lesson to the DIS that it was no super security organ and it does not have any powers to cogently supervise other security organs including the...

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