Botswana economy grows 3.7 percent but households struggle
The economy grew to 3.7 percent in the second quarter of 2026, but household consumption fell by 7.2 percent.
Botswana's economy grew by 3.7 percent in the second quarter of 2026, rebounding from two years of contraction, according to Econsult. This growth was largely driven by mining, while private sector activity and bank lending remained weak.
Despite the overall GDP increase, real household consumption dropped by 7.2 percent in the same quarter. The non-diamond private sector saw only 1.6 percent annual growth, and agriculture contracted by 5 percent due to Foot and Mouth Disease restrictions, causing livestock production to fall by 48 percent.
Bank lending contracted by 2.2 percent in the year to July 2026, with household credit down 4.7 percent, attributed to high borrowing costs. Inflation eased to 7.8 percent in September, down from 10.7 percent in June.
Why it mattersHousehold consumption fell by 7.2 percent in the second quarter of 2026, indicating continued economic pressure on citizens.