Trade surplus holds

Diamond exports dropped in February, but still anchored the country to a second monthly trade surplus since February 2020, as exports of goods exceeded imports by P13.9 million. According to Statistics Botswana figures released this week, exports in February amounted to P8.7 billion powered by P5.9 billion in diamond exports, while imports fell to P6.3 billion in February from P7.2 billion. Diamonds climbed to P8.2 billion in January underpinning the country’s first trade surplus in 11 months. The drop in February still delivered a marginal surplus, suggesting a turnaround in the country’s trade balance, which has been under pressure for months. Statistics Botswana numbers show that the lower imports in February were also influenced by lower diamond imports into the country for that month. De Beers imports rough diamonds from its operations throughout the world into Botswana, to mix with local production and eventual sale via auctions attended by global diamond polishers and traders. The diamond giant traditionally views February as the start of a quiet period, after the end of the holiday retail period. Other major import items such as fuel, machinery, metal products, textiles and vehicles ticked up in February, while on the export side nearly all other items outside of diamonds were lower in February than in January.