Botswana's economy to grow by 8.3%

Botswana's economy is projected to grow by 8.3% this year, supported by stronger global diamond demand and the easing of Covid-19 lockdown restrictions, the International Monetary Fund said on Wednesday.

It added however that the growth outlook was subject to high uncertainty, with downside risks stemming mainly from the evolution of the Covid-19 pandemic, availability and deployment of vaccines, and lower-than-expected diamond revenue.

The economy of the diamond-rich nation contracted by 7.9% in 2020 owing to the coronavirus crisis.

"The Botswana economy is expected to recover in 2021, with growth projected at 8.3%, driven by improvements in the global demand for diamonds, the easing of restrictions on mobility, and the expansionary fiscal stance," the fund said in a statement.

"The recovery is expected to be uneven across sectors, depending on improvement in both the domestic and external environment."

Botswana has had more than 57 500 cases of coronavirus and nearly 850 deaths since the pandemic began, according to a Reuters tally. - Nampa/Reuters