Botswana slashes growth forecast amid prolonged diamond market downturn

Botswana is the world’s leading producer of diamonds by value and its economy largely depends on diamond exports, which normally contribute around 30% of national revenues and 75% of foreign exchange receipts. However, Botswana will cut its 2025 economic growth forecast to almost zero due to a prolonged downturn in the global diamond industry, and with the budget deficit also seen widening due to reduced diamond revenue.

Botswana’s economy contracted by 3% in 2024 largely due to the diamond market downturn, but the government had expected mineral revenues, including diamonds, to more than double this year which would help it avert another recession.