Global Diamond Market upturn will grow Botswana’s economy by 3.3% in 2025

 Botswana’s economy is forecast to grow 3.3% this year due to an expected recovery in the global diamond market. As the world’s leading producer of diamonds by value, Botswana’s economy largely depends on diamond exports. This growth outlook is predicated on the recovery of the diamond industry, which is expected in the latter part of 2025, and continued positive sentiment in the non-diamond mining sectors.

Botswana’s economy is estimated to have shrunk by 3.1% last year, which is a bigger contraction than the 1.7% forecast in December by the government. Botswana’s reliance on diamond revenues has been both a strength and a vulnerability.

The focus would be on expanding key sectors such as tourism, agriculture, manufacturing and energy. Last week, Botswana and diamond giant De Beers said they had finalised talks on a rough diamond sales deal and on extending mining licences for their Debswana joint venture there to 2054. The budget deficit for the 2025/26 financial year running from April to March was estimated to fall to 7.56% of gross domestic product (GDP), lower than the current financial year’s estimated deficit of 9% of GDP.