Mmegi

IMF sees diamond downturn squeezing growth

At the helm: Finance Minister, Peggy Serame, will be keeping a close eye on the numbers emerging from various sectors of the economy PIC: MORERI SEJAKGOMO
At the helm: Finance Minister, Peggy Serame, will be keeping a close eye on the numbers emerging from various sectors of the economy PIC: MORERI SEJAKGOMO

The International Monetary Fund (IMF) now expects the local economy to expand by just one percent this year, as the downturn in diamond mining and associated activities continues.

Earlier this year, in its World Economic Outlook, the IMF had projected 3.6 percent growth for Botswana in 2024. Government at the time of the February budget speech projected a 4.2 percent expansion, but the Bank of Botswana recently said this would likely be missed due to the underperformance of the key mining sector.

In a statement following the institution’s annual review with local fiscal and monetary policy authorities, Luc Eyraud, division chief in the IMF African Department, said the slowdown in diamonds would weigh down the economy this year.

Editor's Comment
The Boko-led administration has to tread carefully

‘When you make peace withyourself, you make peace with the world’- Maha GhosanandaThis may come at a huge cost if not handled properly. What started off on Labour Day in Letlhakane this year, where Boko was in attendance when the militant lawyer-cum-trade unionist, Robert Rabasimane rebutted the President’s address in defence of the trade union has seemingly spiralled out of control. The issue is now creating a cat-and-mouse type of a...

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