Botswana - Country Economic Memorandum: In Search of New Drivers of Inclusive Growth

Botswana aspires to become a high-income economy and eradicate extreme poverty by 2036, but it has shifted from a top to a mid-range performer over the past decade. The public sector-led growth model built on diamond rents shows signs of exhaustion, while the economy has become more vulnerable to financial, climate and health shocks. Botswana can meet its aspirations and avoid getting caught in a middle-income country trap with a greater emphasis on creating the conditions for productivity-led inclusive growth. This report intends to be an input into the government’s strategic vision and policymaking to help move Botswana closer to its ambitious objective of becoming a high-income economy by 2036.