Demand for Diamonds Boosts Botswana's GDP

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Demand for Diamonds Boosts Botswana’s GDP

January 11, 22 by John Jeffay

 

(IDEX Online) – Recovering demand for diamonds has boosted Botswana’s real GDP, which rose 8.4 per cent in Q3 of 2021, year-on-year.

 

By comparison, real GDP in Q3 of Covid-hit 2020 shrank by 4.5 per cent, according to new figures from Statistics Botswana (StatsBots).

 

Rough diamonds have fuelled the country’s economy since the 1970s and account for half of the government’s revenue.

 

“Diamond traders recorded a massive growth of 44.8 per cent as opposed to an increase of 6.2 per cent

recorded in the corresponding quarter of the previous year,” says Statsbots’ report, Gross domestic product: Third quarter of 2021.

 

“The positive growth is due to improved demand for diamonds from the global markets. Diamond production in carats went up by 32.2 percent during the quarter under review. Rough diamond appetite is gradually gaining traction after relaxation of the COVID -19 travel restrictions which impededon the sight holding calendar.

 

“Real GDP decreased by 8.7 percent in 2020 compared to a 3.0 percent increase in 2019. The contraction in real GDP was mainly attributed to diamond traders.”