Mmegi

Gov’t fiscal crunch squeezes business confidence

Slowing down: Government’s fiscal challenges are the biggest concern facing local firms PIC: MORERI SEJAKGOMO
Slowing down: Government’s fiscal challenges are the biggest concern facing local firms PIC: MORERI SEJAKGOMO

Business confidence is being hit hard by worries over slow government spending, with most firms expecting a tight operating environment through to the first half of next year, a Bank of Botswana survey has revealed.

The Business Expectations Survey (BES) for the second quarter of this found that long-term expectations of the business environment are skewed to the downside, with the main worries fuelled by the government's limping revenues and spending.

The researchers found that businesses were wary of market conditions following a series of government announcements to cut spending and halt an array of planned and budgeted expenditure.

Editor's Comment
Warm relations must not come at the expense of fair trade

“I believe that free but fair trade isan absolute imperative”– John E. JamesFor two countries bound by geography, history and deep economic ties, periods of diplomatic strain serve neither side well. President Duma Boko’s efforts to restore momentum to relations with Pretoria deserve recognition, particularly at a time when Southern Africa faces shared challenges ranging from sluggish economic growth and unemployment to energy security...

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