The country’s merchandise trade deficit was pegged at P1.4 billion in August, despite a 39% increase in exports and a decline in imports during the month.
A merchandise trade deficit means the country is importing more goods than it exports, a situation that weakens local foreign reserves and ultimately weighs on the value of the Pula.
Statistics Botswana figures indicate that exports for the month were higher at P3.7 billion powered generally by stronger diamond sales. Imports for the month were 14% softer at P5 billion with reductions across the traditional high-ticket items such as diamonds, vehicles and equipment as well as fuel.
The August deficit was an improvement
The difference this year has been weakening diamond exports caused by lower demand in the cutting and polishing firms, a critical segment of the rough diamond pipeline.
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