According to experts, Botswana is among countries most exposed to the various negative effects of the crisis. Factors militating against Botswana include the fact that the country is a net importer of goods, particularly fuel, is economically dependent on mineral exports, especially diamonds and its growth prospects are largely built around investment in minerals. The World Bank's Global Economic Prospects (GEP) 2009 Report, released last Tuesday, states that growth in the sub-Saharan Africa economy is expected to decline to 4.6 percent, down from growth of 5.4 percent this year. The report also projects that Botswana's economy, as measured by the gross domestic product (GDP), will slow down in 2009, before picking up the next year. The World Bank Report holds the same views for most sub-Saharan African economies.
"For Africa, weaker external demand and lower commodity prices will be the major mechanisms through which the financial crisis will be transmitted. Declines in demand in key external markets will take a toll on exports, and the contribution of trade to GDP growth is likely to be negative in 2009.
