Lower demand for diamonds to hit Botswana GDP

The economic growth of Botswana, one of the most promising mining frontiers nowadays, is expected to slow this year to less than half of the growth recorded in 2011 and the lower demand for mining products is to blame, the country’s president says. In a general speech, president Ian Khama said reduced output from the mining sector in particular was likely to drag growth to 3.5% this year, below the 8% registered last year.

“The diamond market has been significantly affected by the prevailing global economy slowdown. We expect this to have an adverse effect our economy, as diamonds are still a significant contributor to our GDP”, said president Khama.