FX.co ★ Botswana’s Economy Suffers Deeper Contraction in Q2

Botswana's economy contracted by 5.3% in the second quarter of 2025 compared to the same period the previous year, marking the sixth consecutive quarter of decline following a revised 0.4% decrease in the first quarter. This represents the most significant economic downturn since the second quarter of 2020, driven largely by a sustained drop in diamond demand. The mining and quarrying sector saw a sharp decline of 37.8%, primarily due to a 41.3% fall in diamond output and a 2% decrease in coal production. Other sectors contributing to the downturn included diamond trading, which plummeted by 46.5% compared to a previous decline of 36.2%, as well as water and electricity, which dropped by 6.6% from a previous 29% decrease, and manufacturing, which saw a slight decline of 0.5% versus a prior 1% decrease. Most industries posted solid growth except for construction, which experienced only marginal growth of 0.3%. On a quarter-to-quarter basis, GDP fell by 3.6% in the second quarter, marking the largest decline since the second quarter of 2020, following a revised 0.2% fall in the previous quarter.