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
Consult, get buy-ins first for 6 to 6 policy, Hon Minister

While the minister is of the view that the proposal would have significant positive economic impact, the entertainment industry players believe otherwise. The issue has over the weeks become a hot potato. But what is of essence right now is that the country needs liberal ideas to move in the right direction While opening up the economy may sound quite interesting to the ear, rolling out extended trading hours through pilot programmes without...

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