FX.co ★ Botswana GDP Shrinks in Q4

Botswana’s economy contracted by 5.4% year-on-year in Q4 2025, reversing the 8.2% expansion recorded in the previous quarter. The downturn was driven primarily by a sharp 47% decline in the mining sector. Diamond output dropped 54.6%, while coal and soda ash production fell by 13.3% and 8.2%, respectively. Growth in diamond trading also slowed dramatically, to 2.1% from 88.1% in the prior period. The country has been severely affected by a prolonged slump in the global diamond market, reflecting heightened economic uncertainty and the growing appeal of synthetic diamonds. Other sectors that weighed on GDP included construction (-2.3% vs -1.1% previously) and water and electricity (-1.3% vs -30.1%). On a quarterly basis, GDP shrank by 11.4% in Q4, the steepest decline since Q2 2020, following a 10.9% increase in the preceding quarter.