Botswana economy suffers steep contraction in Q2 on diamond sector woes

Botswana's economic output fell sharply in the second quarter, reflecting a steep decline in output from its key diamond industry, data from the statistics agency showed on Friday.

Gross domestic product decreased 5.3% in year-on-year terms, the steepest quarterly contraction since the Covid-19 pandemic.

"Diamond production in carats declined 43.1% in the second quarter of 2025. The steep decline reflects the diamond companies continued effort to scale down operations amid sluggish global demand," the statistics agency said in a report.