Mmegi

Trade deficit persists in Jan

Economic mainstay: Debswana is the economy's principle trade commodity PIC: DEBSWANA
Economic mainstay: Debswana is the economy's principle trade commodity PIC: DEBSWANA

Continued weakness in diamond exports saw the country’s trade balance fall to a deficit of P2.7 billion in January, compared to a shortfall of P1.7 billion in December, preliminary figures released by Statistics Botswana indicate.

The trade deficit for January, which represents the difference between the country’s exports and imports, is the latest in a series of negative figures for the economy which stretch back to September last year when diamonds began underperforming.

Diamond producers such as De Beers hope to rebound this year after a difficult 2023 caused by global economic weaknesses, a softer-than-forecast rebound in China, and industry reputational concerns amongst consumers due to the Russia-Ukraine conflict. The strong demand of 2021 and 2022 met these factors and resulted in a glut or oversupply in the market at the retail level in 2023.

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