botswanas economy is forecast to grow by 43 this year largely on higher prices and demand for diamonds the international monetary fund said tuesday the growth is also anchored on good rainfall in some parts of the country and increasing international tourist arrivals it said however the projected growth is slower than the 114 recorded in 2021 the imf said growth will depend heavily on the path of commodity prices imf mission chief to botswana papa ndiaye said in a statement an abrupt slowdown in china or a protracted war in ukraine could weaken global demand thus lowering demand for diamonds he said however prolonged sanctions against russia the worlds largest rough diamond producer according to the imf could increase demand and prices of botswanas diamonds mr ndiaye said botswana is the worlds second largest diamond producer according to a us commerce department report in 2020 faster tightening of monetary policy in key advanced economies could trigger volatility in global markets prompt capital outflows and reduce demand for diamonds mr ndiaye said rising inflation rates could further hamper the economic recovery this year he said inflation exceeded the central banks mediumterm objective range of between 3 and 6 in 2021 and increased sharply in the first few months this year he said currently botswana inflation is at around 10 mr ndiaye said