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Middle East unrest weighs on deficit, inflation

Under pressure: Finance Minister, Ndaba Gaolathe PIC: KENNEDY RAMOKONE
Under pressure: Finance Minister, Ndaba Gaolathe PIC: KENNEDY RAMOKONE

The impact of ongoing conflict in the Middle East is likely to push average inflation to double digits, whilst widening the budget deficit and delaying a return to fiscal stability, researchers at Standard Chartered have said.

In a recent research report, Emmanuel Kwapong, Economist Africa at Standard Chartered, said the Middle East conflict was likely to worsen the country’s existing macroeconomic challenges, which largely emanate from the prolonged weakness in diamonds.

“We now expect a more subdued recovery in the diamond sector, Botswana’s key growth driver, as the conflict weighs on global growth and discretionary spending in key diamond end-markets," he said.

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Editor's Comment
As A3 opens, responsibility rests with driver

For decades, the Francistown-Nata road has witnessed countless accidents, many of them fatal. Families have lost loved ones. Businesses have suffered delays while motorists have repeatedly complained about the poor condition of the road.The opening of the new section is therefore welcome news and a reminder that investing in quality infrastructure can save lives.However, while the smooth new surface brings relief, it also comes with greater...

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