GABORONE, Dec. 19 (Xinhua) -- Botswana's economy is projected to grow by 3.1 percent in 2026, although challenges continue to persist in the diamond sector, Vice President and Minister of Finance Ndaba Gaolathe said on Friday.
Labor-intensive sectors such as manufacturing, tourism, agriculture and the financial sector have been identified as the primary drivers of the envisaged growth and economic rebound, Gaolathe said when delivering the 2025 mid-year budget review statement in Gaborone, the capital of Botswana.
However, Gaolathe said this projection remains subject to revision, as the macro-fiscal outlook will be updated following the release of the third-quarter gross domestic product (GDP) estimates at the end of this month.
The domestic economy faces considerable strain in 2025, with the GDP projected to contract by 0.9 percent, following a 3 percent contraction in 2024, Gaolathe noted.
"This forecast reflects continued weakness in the diamond sector, spillovers from global growth deceleration and the adverse impact of protectionist trade measures, notably U.S. tariffs," he added.
The International Monetary Fund's October 2025 World Economic Outlook projects global growth to slow to 3.2 percent in 2025 and 3.1 percent in 2026.
