04 June 2010

Bad News Friday

My nemesis the Stationary Bandit notes that the economy of Botswana shrank last year.

Last year's economic performance was not good.

  • Botswana’s economy contracted by 6.7 percent last year as revenue from diamonds plummeted, Central Bank Governor Linah Moholo said.

This succinctly summarizes the problem for Botswana. Although its growth record for decades has been impressive, it remains too undiversified.  Diamonds and cattle remain large sectors of the economy.  When diamond revenues plummet, the economic consequences are severe.  Add in the HIV/AIDS situation with a contracting economy can quickly turn an African success story into another African Growth Tragedy.

I’m going to get drunk.

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