The economy of Botswana plunged by 5.3% year-on-year in Q2 2025, extending the downturn into a sixth consecutive quarter following a revised 0.4% decline in Q1. This was the steepest economic contraction since Q2 2020, as a prolonged slump in diamond demand pressures the economy. The mining and quarrying sector tumbled 37.8%, mainly due to a 41.3% drop in diamonds and a 2% decline in coal production. Other negative contributors included diamond traders (-46.5% vs -36.2%); water & electricity (-6.6% vs -29%) and manufacturing (-0.5% vs -1%). All other industries recorded solid growth , except construction, with marginal growth of 0.3%. On a quarterly basis, the GDP slumped by 3.6% in Q2, the most since Q2 2020, after a revised 0.2% decline in the prior period.