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flag Botswana’s economy contracts for a second year in 2025 due to a failing diamond sector, prompting a search for international aid and trade deals.

flag Botswana faces a deepening economic crisis in 2025, with the IMF projecting a second consecutive year of contraction due to a struggling diamond sector, despite a 10% rise in the informal economy. flag The country has entered a technical recession, affecting more industries than in 2024, and is seeking international aid as declining diamond revenues strain public services. flag Efforts to secure a duty-free trade deal with the U.S. for its diamond exports are nearing completion, aiming to counteract a 37% tariff. flag Meanwhile, a new African Development Bank report reveals Botswana holds P1.64 trillion in national wealth but fails to leverage it due to weak reforms, poor governance, and lack of economic diversification.

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