Botswana’s Gross Domestic Product (GDP) declined in the last quarter of last year on the back of continuing slump in diamond demand globally. According to Statistics Botswana’s latest report for the fourth quarter of 2025, GDP at constant 2016 prices for the fourth quarter of 2025 was P46, 947.3 million, compared to the P49, 631.1 million recorded in the fourth quarter of 2024, a decrease of 5.4 percent.
The government’s numbers agency added that the real Gross Domestic Product shrunk by 5.4 percent during the period under review, as opposed to a contraction of 1.9 percent in the same quarter of 2024. “The decline was attributed to the decrease of real value added for Mining & Quarrying, Construction and Water & Electricity by 47.0, 2.3 and 1.3 percent respectively. All other industries recorded positive growths,” it said in the quarterly report. On a quarter to quarter comparison the real GDP decreased by 11.4 percent during the quarter under review.
The quarterly review revealed that the Mining and Quarrying industry recorded a 47.0 percent decrease in real value added during the fourth quarter of 2025 compared to a decline of 27.2 percent recorded in the corresponding quarter of 2024. “The decrease is primarily driven by a substantial decline in diamond production, by 54.6 percent. Mining of Coal and Soda Ash Salt also declined by 13.3 and 8.2 percent respectively.”
However, Non-mining Gross Domestic Product (GDP) grew by 2.6 percent in the fourth quarter of 2025, marking a slowdown from the 4.2 percent growth recorded in the same quarter of the previous year. On the other hand, the Agriculture, Forestry and Fishing industry recorded a growth of 4.2 percent in real value added in the fourth quarter of 2025, compared to a 1.9 percent decrease recorded in the same quarter of 2024. “The growth was primarily driven by a 5.7 percent increase in real value added within the livestock farming subsector. This increase was further supported by a substantial rise in cattle deliveries to the Botswana Meat Commission, which increased by 193.2 percent,” Statistics Botswana stated.
During the quarter under review, Public Administration and Defence became the major contributor to GDP by 18.2 percent, followed by Wholesale & Retail Trade at 13.2 percent, Construction at 12.1 percent and Mining & Quarrying at 6.8 percent. The Manufacturing industry grew by 6.5 percent in the fourth quarter of 2025, compared to a decline of 7.2 percent registered in the corresponding quarter of 2024. Meanwhile, construction industry’s value added contracted by 2.3 percent in the fourth quarter of 2025, compared to a 0.4 percent increase recorded in the corresponding quarter of 2024.
The industry comprises building construction, civil engineering, and specialised construction activities. This may highlight government’s decision to curtail spending during the 2025-26 financial year. The real value added in the Water and Electricity industry contracted by 1.3 percent in the fourth quarter of 2025, from P715.3 million recorded in the corresponding quarter of 2024, to P706.1 million. On the other side, The real value added of Wholesale and Retail Trade grew by 4.1 percent in the fourth quarter of 2025, compared to a 7.8 percent increase in the same quarter of the previous year. This industry primarily focuses on the sale of fastmoving consumer goods.