05 Jul 2023

The economy, measured through Gross Domestic Product (GDP), showed a slight improvement in the first quarter of 2023, driven mainly by Mining and Quarrying followed by Public Administration and Defence, information from Statistics Botswana indicates.

The nominal GDP for the first quarter of 2023 was P66.8 million compared to P65 million registered during the previous quarter in the first quarter of 2023, according to a release from Statistics Botswana.

“This represents a quarterly increase of 2.8 per cent in nominal terms between the two periods. During the quarter under review, mining and quarrying became the major contributor to GDP by 19.6 per cent followed by public administration and defence at 15.5 per cent,” the document reads.
The estimates are not seasonally adjusted, hence the variations may differ depending on the quarters.
“The increase in the real value added of Mining and Quarrying by 10.8 per cent was mainly influenced by the increase in the copper and diamond real value added by 118.0 and 10.7 per cent respectively,” Statistics Botswana states.

The statistics body found that diamond production in carats increased in the first quarter of 2023, in addition, due to favourable diamond prices from global markets. Diamond traders recorded a slight growth during the quarter under review.
The increase in diamond production was mainly driven by the planned strategy to align production with increased demand from international markets. “Furthermore, the stabilization in the production at Khoemacau Copper Mine (KCM) has contributed to the growth in copper concentrates export by 121.3 per cent in comparison with the corresponding quarter of previous year,” the release states.

“Real GDP for the first quarter of 2023 increased by 5.4 per cent compared to the 6.8 per cent growth registered in the same quarter of the previous year, ” Statistics Botswana says, adding that the growth was attributed to real value added by water and electricity and mining and quarrying industries which rose by 19.3 and 10.8 per cent respectively.
Water and electricity value added for the first quarter of 2023 was P641.0 million compared to P537.2 million registered in the same quarter of 2022, recording a positive growth of 19.3 per cent.

According to Statistics Botswana, in 2023 quarter one, electricity recorded a positive growth of 36.6 per cent as opposed to an increase of 10.8 per cent registered in the corresponding quarter of 2022. The statistics body observes that the local electricity production increased due to the improved coal uptake by both Morupule A and B power stations. The volume of imported electricity went down by 25.1 per cent during the quarter under review.
In the June 2023 GDP review, the water industry recorded a value added of P225.4 million compared to P232.9 million registered in the same quarter of the previous year, registering a decrease of 3.2 per cent. Water consumption in kilolitres went down by 15.5 per cent during the first quarter of 2023.

Quarterly GDP estimates assist in the analysis of short-term movements in the economy, as opposed to the annual GDP, which provides an in-depth and comprehensive view of the changes in the economy.
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