Flagging economy needs robust credit growth

Tuesday, April 14, 2015

The recently announced lower than forecast 2014 economic growth figures will likely induce the Bank of Botswana (BoB) to maintain an expansionary monetary policy to spur economic activity, analysts reckon.

Last week, Statistics Botswana announced that Gross Domestic Product (GDP) grew by 4.4 percent in 2014, the lowest growth rate recorded in the post 2009-recession period.

Government had estimated an economic growth rate of 5.2 percent in 2014, while the International Monetary Fund (IMF) had forecast a GDP growth rate of 4.9 percent in the year.

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Flagging economy needs robust credit growth

The recently announced lower than forecast 2014 economic growth figures will likely induce the Bank of Botswana (BoB) to maintain an expansionary monetary policy to spur economic activity, analysts reckon.