Botswana Economy
Published by OurEconomy.org on November 30, 2009 filed under Botswana Economy · Comments (0)
Botswana Economy |
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Botswana’s economy was defined as 36th world’s freest economy by the Heritage Foundation. It was estimated to be 68.6 % free.
Botswana enjoys Strong property rights, financial freedom, investment freedom, labor freedom, and lower corruption rate. Another positive trend in the country’s economy is that it is almost free from government’s interference.
The national GDP amounted to $26.04 billion in 2007. GDP per capita made up about $14,300 in the same year. The main share is provided by the services sector and industry. Together they bring over 90 % of the total GDP.
Average inflation rate during the period 2004—2006 amounted to 10.2%. Government has some control over prices. However, it is reported that the figure went down to 7.1% in the year 2007.
The imported goods were worth of over $3 billion in the year 2007. The main imported goods are transport equipments, machinery, fuel and petroleum products, textiles, food stuffs and metal. The country’s main importer is Southern African Customs Union.
As far as export is concerned, in 2007 Botswana exported goods of the total worth of $5 billion. The country exports soda ash, diamonds, textiles nickel, copper, and meat. Its major importer is European Free Trade Association that receives 87% of the country’s export.
One of the major problems of Botswana is the lack of trade and monetary freedoms. Import of some set commodities is forbidden in the country. The economy gets hindered by the government’s bias in procurement.
It should be said, that economic growth in the country has been in progress. However, it is important for the country to solve such issues as unemployment and poverty in order to attain stable economic growth. Another problem that can impede the economy of Botswana is that it has the second highest HIV/ AIDS infection rate in the world. As far as the country’s revenue is concerned, it has always been provided by mining and is likely to be so for next years.
Topics: Botswana Economy, economic growth, economy, economy of botswana, gdp per capita, national gdp, petroleum products, poverty, stable economic growth
