Economy grows in Q2

The economy expanded by 5.6 percent in the second quarter of this year, helped by the contributions of diamond trading activities as well as the water and electricity sector. Figures released by Statistics Botswana show that all sectors of the economy measured to produce real Gross Domestic Product (GDP) recorded positive performances in the second quarter, with the exception of mining and quarrying which declined by 3.4 percent. The reduction in the key sector was mainly influenced by the decrease in the real value added for diamond and gold due to lower production of both over the second quarter. Despite the lower real value added, mining and quarrying were the major contributors to GDP in the second quarter with 16.7%, followed by public administration and defence at 16.6 percent, and wholesale and retail at 11.2%. The growth in the second quarter represents a normalisation of economic activity when compared to the 37.1% increase over the same period last year and the 26.9% contraction in the second quarter of 2020. On a quarter-on-quarter basis, the economy declined by 1.5 percent in the second quarter.