Botswana anticipates a 3% to 4% economic growth in 2025, following a contraction in 2024, according to a senior government official speaking at a budget workshop.
This projected rebound is attributed to an expected recovery in the global diamond market, combined with continued growth in non-mining sectors.
"The domestic economy is anticipated to rebound in 2025 to a growth of 3-4%, reflecting a combination of base effects, the global recovery in the major diamond export markets and continued growth in the non-mining sector," director of macroeconomic policy in the finance ministry, Walter Matekane.
While the economy contracted by 3.3% in the first three quarters of 2024, exceeding the December forecast of a 1.7% contraction, officials are optimistic about the coming year.
Looking ahead, the government of Botswana expects recovering mineral revenues to shrink the budget deficit from a projected 6.75% of GDP in 2024/25 to 3.6% in 2025/26. The official 2025/26 national budget will be presented by Finance Minister Ndaba Gaolathe in February.