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Significance The economy remains heavily dependent on diamonds, which constitute almost 80% of export revenues and 25% of GDP. The contraction represents the largest negative economic shock since the COVID-19 pandemic shuttered the country’s mining industry. Impacts The slowing economy will damage the government’s position ahead of elections in October 2024. Falling prices for synthetic diamonds pose a long-term threat to Botswana’s economic prospects. Lower revenues from diamond sales threaten the government’s fiscal targets.
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