S&P revises Botswana's outlook to 'stable' as diamond sector improves – report

Ratings agency S&P has revised Botswana’s outlook to 'stable' from 'negative' due to an economic recovery buoyed by a strong diamond sector.
"We expect Botswana's diamond export-dependent economy will rebound by 8.5% in real terms in 2021 because the diamond industry is rebounding from 2020's large pandemic-induced contraction," S&P was quoted as saying by Reuters.
Botswana recently revised its economic growth to 9.7% in 2021 from the previous forecast of 8.8% in February as a result of higher diamond sales coupled with the rebasing of GDP accounts. 
Botswana revised its real GDP accounts base year to 2016 from 2006 to improve the accuracy of its measurement of economic growth.
As a result of the rebasing, last year’s economic contraction was 8.5% instead of 7.9% initially reported, while nominal GDP is now 4.6% lower at $15.5 billion.
Debswana’s rough diamond sales rose 41% in the first half of the year driven by demand from major markets the United States and China.
The company’s rough diamond sales dropped by 30% in 2020 as a result of the COVID-19 pandemic.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished