IMF trims Botswana growth prospects

Bearish: Weaker diamond demand has impacted on Botswana's fiscus
Bearish: Weaker diamond demand has impacted on Botswana's fiscus

Botswana’s economic growth slowed to 2.3 percent in 2015, compared with 4.4 percent the previous year due to weak global demand for diamonds and falling customs revenues, the International Monetary Fund (IMF) said.

The IMF had previously forecast the economy to grow at 4.4 percent in 2015. “After recovering strongly from the 2009 downturn, Botswana’s pace of economic activity is slowing in 2015 owing to weaknesses in the global demand for diamonds,” IMF executive Enrique Gelbard said following a two-week visit to Botswana. On the back of the headwinds faced by the economy, government last September halved 2015 economic growth forecasts to 2.6 percent, although other analysts such as those at Econsult, were even more pessimistic, projecting the economy to grow by a paltry one percent in 2015.

An IMF staff team, led by Gelbard visited Gaborone during December 7–22 for discussions on the 2015 Article IV Consultation with Botswana.

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