The government of Botswana is executing its transitional development plan to pivot the economy away from its heavy reliance on diamond mining. This strategy focuses on capital investment in digital infrastructure, boosting high-value tourism, and expanding financial services.
The economic transition aims to raise non-mining output by 12 billion Pula over the next three years. Analysts argue that while overall economic growth has been resilient, the benefits of this expansion are unevenly distributed across the population.
Furthermore, with rapid population growth, economists emphasize that tracking total economic output alone does not reflect the standard of living of the average citizen. Consequently, policymakers are closely monitoring real GDP per capita to evaluate whether the nation's rising output is translating into meaningful welfare gains for individual households.
Define the term 'real GDP per capita' (Extract B).
