Public Management

IMF forecasts Botswana's economic growth to slow to 1% in 2024

IMF forecasts Botswana's economic growth to slow to 1% in 2024
Monday, 15 July 2024 20:49

Botswana's economic growth is projected to slow to 1% in 2024, down from 2.7% in 2023, the International Monetary Fund (IMF) reports following a two-week mission to Gaborone.

In a statement released on July 12, the IMF attributed the decline to a reduction in diamond production, which will be partly offset by construction projects funded through fiscal expansion.

Botswana relies heavily on diamond revenues, which account for about 40% of public revenues, nearly a third of GDP, and 75% of foreign exchange earnings. However, the natural diamond market is currently facing a crisis due to declining demand and prices, as consumers increasingly turn to synthetic stones.

Inflation is expected to remain within the Bank of Botswana's target range of 3% to 6% in the medium term, supported by falling international oil and food prices, which keep inflationary pressures low.

On the fiscal front, the IMF forecasts a budget deficit widening to 6% of GDP in 2024, driven by falling mining revenues and increased capital expenditures. The IMF emphasizes the need for medium-term fiscal consolidation to achieve the authorities' goal of a budget surplus by 2026, thereby preserving fiscal sustainability.

To boost growth and job creation, the IMF recommends increased private sector participation, export diversification, and improved public sector efficiency. Policy priorities include reforming state-owned enterprises, enhancing trade-related infrastructure such as internet, energy, and logistics, and implementing trade facilitation measures.

In the medium term, Botswana's economic growth is expected to converge towards 4%, supported by a recovery in diamond mining, according to the IMF.

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
Key Highlights • Somalia inaugurates its first stock exchange, the National Securities Exchange of Somalia (NSES), in Mogadishu. • NSES will start...
Key Highlights: • Master Plastics receives undisclosed funding from Nedbank and Investec to expand sustainable packaging production. • Metier Capital...
Key Highlights: • Ghana requires approximately $6 billion in funding to implement comprehensive flood prevention and control measures.• Flooding...
West Africa’s regional exchange is exploring a shift from T+3 to same-day settlement Global markets are already adopting faster cycles like T+1 and...
Most Read
01

• Maritime sector faces renewed risks amid military tensions in the Middle East• Blockade fears at S...

Israel-Iran conflict raises new threats for global shipping and oil trade
02

(AfDB)-Egypt's first integrated solar and battery storage plant will deliver dispatchable clean ener...

AfDB, EBRD and BII support pioneering solar and battery storage project in Egypt with $476 million loan
03

Lion Group to explore and exploit gold, copper, and manganese in Algeria Malaysian firm plans...

Algeria, Lion Group sign mining and metals investment deal
04

Ucamwal plans three new funds in Côte d’Ivoire, including Halal and women-focused options Two...

United Capital to launch Islamic and women-focused funds in Côte d’Ivoire
05

• FAO and WFP list Sudan, Nigeria, DR Congo, and others as hunger hotspots through Oct. 2025• Armed ...

UN sounds alarm on rising food insecurity in eight African countries
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.