Bittersweet forecasts for Botswana

Mmegi: The Global Economic Prospects 2010 Report forecasts a growth rate of 4.8 percent for Botswana for 2010/11. The government has forecast a rate of five percent. Given the slow rise in the prices of Botswana's prime exports, coupled with the rise in VAT and general erosion of disposable incomes, do you believe these rates could be achieved?

Burns: I believe that's within the realm of possibility. We believe the Botswana economy contracted by about eight percent last year and even if it grows by five percent this year, it will still be below what we saw before 2008 and thus the social issues like unemployment and spare capacity in industry will continue. Without demand, the gap between what the country is producing and what it could be producing will continue growing.