Economy of Botswana

The economy of Botswana is currently one of the world's fastest growing economies, averaging about 5% per annum over the past decade. Growth in private sector employment averaged about 10% per annum during the first 30 years of the country's independence. After a period of stagnation at the turn of the 21st century, Botswana's economy registered strong levels of growth, with GDP growth exceeding 6–7% targets. Botswana has been praised by the African Development Bank for sustaining one of the world's longest economic booms. Economic growth since the late 1960s has been on par with some of Asia's largest economies. The government has consistently maintained budget surpluses and has extensive foreign-exchange reserves.

Botswana's impressive economic record compared to some of its neighbors has been built on a foundation of diamond mining, prudent fiscal policies, and a cautious foreign policy. Botswana's economy is mostly dependent on diamond mining. Diamond mining contributes to 50% of the government revenue mainly through its 50:50 joint venture with De Beers in the Debswana Diamond Company.

One concern for the country's economy is rising competition from lab-grown diamonds, which has led to a significant decrease in worldwide demand for mined diamonds beginning in the early 2020s. The resulting reduction in the value of diamond exports prompted the IMF to forecast Botswana to run a fiscal deficit of 11%, and the Botswana ministry of finance to forecast negative GDP growth for the country in 2025.

As of 2020, Botswana is rated as the third least corrupt country in Africa in the Corruption Perceptions Index by international corruption watchdog Transparency International. It has the fourth highest gross national income per capita in purchasing power in Africa and above the world average.

Trade unions represent a minority of workers in the Botswana economy. In general they are loosely organised "in-house" unions, although the Botswana Federation of Trade Unions (BFTU) is consolidating its role as the sole national trade union centre in the country.

Although Botswana's economy is considered a model for countries in the region, its overreliance on mining and its high rate of HIV/AIDS infection (one in every three adults is seropositive) and unemployment may threaten its future success. Botswana has become the first high-burden country to be certified for achieving an important milestone on the path to eliminating mother-to-child transmission of HIV by the World Health Organization (WHO).