5 October 2026
Botswana’s real Gross Domestic Product (GDP) expanded by 8.7% in the second quarter of 2026, marking a sharp turnaround from the 5.2% contraction recorded in the corresponding quarter of 2025, according to the latest GDP figures.
GDP at constant 2016 prices rose to P51.94 billion in the second quarter, from a revised P51.26 billion in the first quarter of 2026. The strong performance was largely driven by the Mining and Quarrying industry, which recorded an 81.7% increase in real value added, reflecting a significant boost in production from export-oriented industries, particularly diamond mining.
Despite the strong headline growth, the broader domestic economy remained under pressure. Real non-mining GDP declined by 0.2%, falling from P41.74 billion to P41.66 billion, compared with a 2.8% increase in the same quarter of 2025.
The Statistics Botswana figures show that growth was also recorded across several other sectors. Professional, Scientific and Technical Activities grew by 3.8%, Accommodation and Food Services by 3.4%, Education by 3.3%, while Wholesale and Retail Trade expanded by 3.1%.
However, Agriculture, Forestry and Fishing contracted by 23.0%, while Diamond Traders declined by 27.9%. Manufacturing also recorded a 9.2% decline, followed by Construction at 1.6% and Administrative and Support Services at 0.2%.
The growth came despite a 3.0% decline in domestic final demand, with increased production for external markets helping to sustain overall economic activity. Meanwhile, Gross Fixed Capital Formation increased by 7.8%, reversing the 4.4% decline recorded in the second quarter of 2025 and pointing to stronger investment activity during the period.
In terms of sectoral contribution to the economy, Public Administration and Defence accounted for the largest share of GDP at 18.2%, followed by Wholesale and Retail Trade at 13.1%, Construction at 12.2% and Mining and Quarrying at 9.5%.
The figures underline the continued importance of the mining sector to Botswana’s economic performance, while also highlighting the challenge of translating export-led growth into broader expansion across the non-mining economy.
Source: The Projects Magazine
