Botswana`s Decade Of Rapid GDP Growth Is Over – Moody`s

source: Mmegi
By Wanetsha Mosinyi
Staff Writer

Botswana’s era of “fast economic growth” that lasted for a decade is probably over as a global economic recession cuts demand for diamonds and other commodities, says Moody’s Investors Service.

The government’s “financial strength” will underpin the country’s A2 credit rating, even as growth slows, Kristin Lindow, senior vice president at Moody’s sovereign risk team, said in a statement on Friday. Botswana, the world’s biggest diamond producer, relies on exports of the gems for about two-thirds of government revenue.

The US and Japan, which are in their deepest recession period, account for the bulk of Botswana’s diamonds.”The recent collapse in commodity prices as a consequence of the onset of the global recession is likely to have a dampening effect on diamond as well as other resource [continue reading]

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