Falling Rough Diamond Demand and Prices Hinders Botswana Development
February 02, 16
(IDEX Online News) – Botswana’s Finance and Development Planning Minister, the Honorable O.K. Matambo said that depressed rough diamond and prices had weakened the country’s domestic economic prospects.
Delivering the Botswana’s budget yesterday (Monday) Matambo outlined that falling global commodities prices, including a diminishing market for the country’s diamonds, was threatening domestic growth prospects.
The slowdown in diamond sales impacted Botswana’s economy, which declined 3.5 percent in the third quarter of 2015, with the growth estimate for 2015 being revised down from 2.6 percent to 1 percent. The growth rate in 2014 was 3.2 percent.
With regard to the balance of payments and foreign exchange reserves, exports of goods and services decreased 18.6 percent in 2015, with weak global demand for rough diamonds being a key factor.
Matambo said that according to the government the medium-term fiscal outlook was a cause for concern, particularly as prices and demand for rough diamonds remain depressed.