The nominal Gross Domestic Product (GDP) for first quarter of 2020 grew as compared to prior quarter in 2019 – that was just before the COVID-19 storm grounded the local economy to a halt.
Statistics Botswana’s GDP report shows that the nominal Gross Domestic Product (GDP) for the first quarter of 2020 stands at P50, 726.8 million compared to P49, 488.5 million registered during the prior quarter. This represents an increase of 2.5 percent in nominal terms between the two periods.
During the quarter under review Trade, Hotels and Restaurant’s remained the major contributor to GDP by 19.5 percent in Q1. The sector had also stood out to be the largest contributor to the GDP during the third quarter of 2019 by contributing 19.4 percent thus positioning the sector as crucial backbone of economy.
The Mining and Quarrying, General Government and Finance and Business services followed with 15.5, 14.9 and 14.8 percent respectively while input of other sector was below 7.0 percent. Water and electricity sectors were the lowest contributors with 0.8 percent input.
“Real Gross Domestic Product for the first quarter of 2020 increased by 2.6 percent. The increase was attributed to the significant growth in real value added of Water & Electricity, Finance and Business Services and Trade, Hotels and Restaurants industries by 13.4, 6.2 and 4.4 percent,” Statistics Botswana underscored.
Statistics Botswana also said the estimated GDP at current prices for the first quarter of 2020 was P50 726 compared to P49 488 million that was registered during the first quarter of 2019. Moreover, real GDP at constant 2006 prices for the first quarter of 2020 was P25, 071.0 million equated to P25, 288.1 million noted in the first quarter of 2019 with domestic economy falling.
The domestic economy increased by 2.6 percent in the first quarter of 2020 compared to a rise of 4.2 percent recorded in the same quarter of 2019. The growth was attributed to real value added of Water & Electricity, the Finance & Business Services and Trade, Hotels & Restaurants which increased by 13.4 , 6.2 and 4.4 percent respectively,” reads part of the Q1 GDP report.
Despite mining being admired as a key contributor to Botswana’s economy, mining production fell by 5.6 percent in Q1.
The first quarter report of 2020 index on the physical volume of the mining production shows that the mining production stood at 84.5 compared to huge 86.6 recorded during Q1 of 2019.
According to the index, the main contributor towards the 5.6 percent drop in mining production was as a result of diamonds contributing negative 5.5 percent points in a quarter under review.
However, in the 2020 Q1 GDP score card Non-mining GDP increased by 3.6 percent in the first quarter of 2020 compared to 4.3 percent registered in the same quarter of the previous year.