Botswana’s economy is set to contract dramatically amid the fallout from the novel coronavirus pandemic, according to data announced by the country’s finance ministry Friday.
The Southern African country’s GDP is expected to shrink by more than 13% in the current fiscal year, Finance Minister Thapelo Matsheka said in televised address. It’s the largest contraction since the recession that followed the global financial crisis of of 2008.
The mining sector, which represents one of the most important pillars of Botswana’s economy, is expected to be hit the hardest.
“Buyers can’t come and see the stones to purchase them,” Matsheka said of the country’s famous diamonds. The sector as a whole is expected to slump by 33%.
Botswana’s budget is expected to be hit considerably, with the government now projecting a shortfall of nearly $900 million.
