Trade deficit widens to 'worst' level

According to Statistics Botswana data released last week, February's trade deficit marks the most extreme monthly gap between exports and imports, being higher than each of the quarterly deficits recorded last year. From a moderate deficit of P197 million in January 2011, February's monster deficit was led by diamond exports which dropped 43 percent to P1.33 billion and a 76 percent decline in beef exports to P3.9 million.

While analysts expect the drop in diamond exports to be transitory, being the result of higher inventories in the market due to high January sales, the slump in beef exports is directly related to the six-month suspension of exports to the money-spinning European Union market.