- Favourable growth in the sector’s sub-industries propelled improved performance
Statistics Botswana says the country’s manufacturing sector had a significant increase in real value in the fourth quarter of 2021, recording a rise of 6.7 percent compared to a decline of 4.4 percent registered in the corresponding quarter of 2020.
The data agency reveals this in a recent report analysing the Gross Domestic Product (GDP) for the fourth quarter of 2021, which is a quarterly estimate that assists in analysis of short-term movements in the economy as opposed to the annual GDP that provides an in-depth and comprehensive view of the changes in the economy.
According to the report, the improved performance in the industry is attributable mainly to the favourable growth rates in the sub-industries of Diamond Cutting & Polishing (63.9 percent), Manufacture of Wood, Paper and Products Thereof (10.3 percent) and Dairy Products (8.2 percent), compared to negative growth rates of 24.0, 5.3 and 4.6 percent in the corresponding quarter of 2020 respectively.
Exports of polished diamonds rose by 63.9 percent while milk production in litres increased by 2.2 percent from 2,253,347 litres to 2,302,023 litres during the quarter under review. “Similarly, sub-industries such as Manufacture of Basic Metals & Metal Products, Manufacture of Furniture, Bakery Products and Manufacture of Grain Mill & Animal Feed Products registered positive growths in real value added of 7.9 percent, 4.0 percent, 2.7 percent and 2.2 percent respectively,” Statistics Botswana said.
Botswana’s domestic economy advanced by 5.6 percent year-on-year in the fourth quarter of 2021 as opposed to a contraction of 4.6 percent in the same quarter of 2020. On a quarterly basis, GDP shrank by 2.8 percent after a 3.4 percent increase in the previous quarter. Considering 2021 as a whole, the economy grew by 11.4 percent, recovering significantly from an 8.7 percent contraction in the previous year.