Botswana economy set to shrink by 13.1 percent

APA-Gaborone (Botswana)

Botswana said Friday it expects it economy to shrink by 13.1% this financial year due to the effects of coronavirus pandemic.

Addressing  reporters via a televised press conference, Finance and Economic  Development Minister Dr Thapelo revealed that the initial forecast of  4.4% growth for this year will remain a pipe dream.

The  Minister explained that most of the impact is on the mining sector,  particularly diamond mining because buyers can’t come and see the stones  to purchase them.

"In February at the budget I said it would not be business as usual. Now we are looking at business unusual," said Matsheka. 

Matsheka  said the development budget will go down from  the budgeted  P66billion(660 million USD)  to P59. 6 billion(590 million USD). 

He added that the mining sector would drop by 33%, while the hotels and restaurant sector would drop by 32.2%.

Manufacturing will drop by ten percent. The mining sector is the backbone of the country's economy.


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