Botswana’s Q1 GDP performance

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Botswana’s Q1 2025 GDP: Key Sectoral Insights

Botswana’s real GDP for the first quarter of 2025 saw a marginal decline of 0.3% compared to the same period in 2024. While this marks an improvement over the sharper 5.2% contraction in Q1 2024, several key industries showed mixed performance. Below are the sector-specific highlights for ICT, Water and Electricity, Diamond Trading, Wholesale & Retail, and Accommodation & Food Services.

ICT (Information & Communication Technology)

• Growth: The ICT sector grew by 0.9%, showing a slowdown from 1.8% in Q1 2024.

• Drivers: The increase was largely supported by a 1.5% rise in telecommunications value added.

• Outlook: The modest growth signals ongoing digitization, though at a slower pace than the previous year.

Water and Electricity

• Overall Decline: The sector contracted sharply by 29.0% in Q1 2025.

• Electricity:
  

  • Dropped by 53.0%, driven by a 34.0% decrease in local electricity production.

• Water:
  

  • On the upside, water supply activities grew by 9.4%, supported by improved distribution efficiency.

• Implications: The sector’s volatility poses risks for industries reliant on stable utilities.

Diamond Traders

• Contraction: The diamond trading sector declined by 36.2%.

• Context: Though better than the 46.0% drop in Q1 2024, the industry continues to struggle.

• Challenges:
  

  • Weak global demand.

  • Rising competition from lab-grown diamonds continues to undercut natural diamond values.

Wholesale and Retail Trade

• Growth: The industry recorded a 4.6% increase in real value added.

• Comparison: This is higher than the 3.3% growth seen in Q1 2024.

• Key Factors:
  

  • Steady consumer demand for fast-moving goods drove the improvement.

Accommodation and Food Services

• Growth: This sector grew by 2.5%, down from 4.2% in Q1 2024.

• Key Driver:
  

  • Accommodation activities saw a 2.6% increase, pointing to modest growth in tourism-related activity.

• Outlook: Continued improvement in both domestic and international travel could boost this sector in future quarters.

Conclusion

Despite the overall decline in real GDP, non-mining GDP rose by 2.2%, suggesting resilience in diversified sectors. However, the significant contractions in electricity, diamond trading, and mining-related industries continue to weigh on broader economic performance.

If you want to see more information check: statisticsbotswana.com