HomeBase MetalsReduction in mining output hits Botswana GDP

Reduction in mining output hits Botswana GDP

The tall Aquarium building
at Botswana’s Jwaneng
diamond mine “’ the largest
diamond mine in the world
Gaborone, Botswana — 05 April 2012 – The economy of Botswana contracted 5.8% quarter-on-quarter in the last three months of last year, compared to 5.5% in the previous quarter, due to a sharp reduction in mining output in the world’s biggest diamond producer.

Citing the Central Statistics Office here, Reuters reports that on a year-on-year basis, gross domestic product in Botswana expanded by 1.4% in the fourth quarter “’ an abrupt slowdown from a year-on-year 7.1% in the previous quarter.

Annual growth in Botswana “’ one of Africa’s most prosperous nations and the bearer of the continent’s highest credit rating “’ slowed to 5.1% last year from 7.0% in 2010, the statistics agency added.

The construction, water and electricity sectors posted healthy growth in the final three months of last year, along with a big increase in government spending, the report continued, but output from mining “’ which accounts for around a third of the economy “’ slumped 24.8%. The statistics agency gave no reasons for the decline.

Source: Reuters Africa. For more information click here.