World Bank, BIDPA discuss economic prospects

Staff Writer | Tuesday March 16, 2010 00:00

 

The report was released late January and was much anticipated by investors, policy analysts such as the Botswana Institute of Development Policy Analysis (BIDPA) and other stakeholders who look to the World Bank for guidance on economic issues.

This year's GEP focussed on the consequences of last year's global recession and the situation developing countries are likely to find themselves in as a result of tighter prospects for growth.

The lead authors of the report, Andrew Burns and Christina Savescu, are due to lead today's discussion. Both are from the World Bank's Development Prospects Group.

The Global Economic Prospects 2010 Report predicts that buoyed by stronger external demand for the country's prime export, diamonds, Botswana's economy will swell by 4.8 percent this year.

By comparison, the government has projected a GDP growth rate of five percent for 2010/11.

The report also predicts a GDP growth of 5.6 percent for Botswana in 2011, which should return the country to 2006 figures when the economy enjoyed a mining boom and the birth of its cutting and polishing industry.

But there is a warning: 'The major risk facing sub-Saharan economies is that the world economy could experience a double dip or economic stagnation,' says the report.

'This would undermine recovery in external demand for the sub-Saharan economies and would put pressure on commodity prices, undermining government revenues and possibly pushing debt to unsustainable levels.'