JOHANNESBURG – Botswana’s economy grew by 3.1 percent in the first quarter as mining output in the world’s largest diamond producer lifted growth slightly, data from the Central Statistics Office showed on Monday.
The sector dominating the southern African country’s economy is expected to grow slightly for the year, keeping a lid on growth that reached 7 percent in 2010.
Data showed year-on-year growth at 3.2 percent in the first three months of 2012 compared with 1.4 percent in the previous quarter.
Mining contracted by 7.8 percent, coming off a 16.1 percent fall in the fourth quarter of last year, it said.
A slowdown in mining output caused the economy to contract 5.7 percent in the fourth quarter of 2011.
Economists in a Reuters poll last month said 2012 growth should come in at 4.1 percent and 5.1 percent in 2013, lower than previous estimates of 5.2 percent and 5.4 percent for 2012 and 2013 respectively.
A third of Botswana’s output comes from diamond mining. A bleak global growth outlook means demand for the precious stone is unlikely to be robust this year.
The statistics agency said exports were up 7.8 percent in the first quarter, compared to a 1.3 percent rise in the same period last year. Imports decreased to 2.9 percent from 25.7 percent in the first quarter of 2011.
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The International Monetary Fund has forecast growth of 3.3 percent in 2012, improving to 4.6 percent next year.
