Botswana's Shimmering Economy Dims as Diamond Output Declines

Botswana's GDP saw a significant decrease of 5.3% year-on-year in the second quarter, largely due to a 43.1% drop in diamond production. This marks the steepest quarterly decline since the COVID-19 pandemic as diamond companies scale back operations amidst weak global demand.

Botswana's economy experienced a sharp contraction in the second quarter, primarily driven by a dramatic drop in diamond industry output, according to the latest statistics released on Friday.

The country's gross domestic product (GDP) fell by 5.3% compared to the same period last year, marking the most significant quarterly decline since the COVID-19 pandemic struck the global economy.

Diamond production, a key driver of Botswana's economy, plummeted by 43.1% in carats as companies attempted to scale down operations due to persistently sluggish global demand, the statistics agency reported.