Real GDP increased by 36% in the second quarter of 2021
Botswana’s real GDP increased by 36 percent in the second quarter of 2021 compared to a deep contraction of 26.0 percent in the same quarter of 2020, Statistics Botswana has revealed.
According to the report signed by Statistician General, Dr Burton Mguni, the improvement reflects continued efforts to reopen businesses and relaxation of COVID-19 regulations amidst a continued rollout of vaccination
“The recovery in the domestic economy was observed across the majority of industries except Agriculture, Forestry & Fishing,” Dr. Mguni said in the report. “The improved performance of the economy stemmed from a low base brought by rumpled economic activities in the corresponding quarter of 2020 as a result of the COVID-19 pandemic and its combating regulations set by the Botswana Government.”
Agriculture, Forestry & Fishing decreased by 8.4 percent in real value added during the second quarter of 2021, relative to a slight increase of 0.5 percent registered during the same quarter of 2020. “The unfavourable performance was mainly due to a decrease in real value added of Livestock farming by 17.2 percent,” Dr. Mguni noted.
A significant increase in the real value added of Mining & Quarrying by 153.0 percent was mainly influenced by the huge increase in the Diamonds real value added by 172.2 percent. “Diamond production in carats went up by 202.8 percent during the quarter under review,” said the report. “Rough diamond appetite is gradually gaining traction after the COVID -19 travel restrictions which impeded on the sight holding calendar.”
The report shows that Manufacturing performed well during the second quarter of 2021, recording an increase of 32.6 percent in real value added compared to a decrease of 34.7 percent registered in the corresponding quarter of 2020.
“The improved performance in the industry when compared to the same period of the previous year is attributed mainly to the massive positive growth rates in the sub-industries of Diamond Cutting & Polishing (143.5 percent), Production, Processing & Preserving of Meat and Meat Products (47.0 percent) and Manufacture of Other Non-Metallic Mineral Products (42.8 percent), compared to negative growth rates of 74.8, 50.1 and 22.7 percent in the corresponding quarter of 2020, respectively,” Dr Mguni explained.
Water and Electricity value added at constant 2016 prices for the second quarter of 2021 was P392.3 million compared to P310.0 million registered in the same quarter of 2020, recording a growth of 26.6 percent. “In the second quarter of 2021, Electricity recorded a significant growth of 41.0 percent compared to a decrease of 326.4 percent recorded in the corresponding quarter of 2020,” the report noted. “The local Electricity Production increased by 26.4 percent during the quarter under review. The Water Industry recorded a value added of P211.3 million compared to P181.7 million registered in the same quarter of the previous year, registering an increase of 16.3 percent.”
The Construction Industry value added went up by 37.9 percent in the second quarter of 2021 compared to a decrease of 32.4 percent realised in the corresponding quarter in 2020 whereas the Transport and Storage value added increased by 23.5 percent in the second quarter of 2021, compared to a 21.3 percent decrease recorded in the same quarter of the previous year.
The Accommodation and Food Services real value added increased by 44.8 percent in the second quarter of 2021 compared to a decline of 53.8 percent registered in the same quarter of the previous year.