Mmegi

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.

Editor's Comment
Diplomatic relations must be on equal footing

“Let us never negotiate out of fear.But let us never fear to negotiate”– John F. KennedySupport for healthcare, education, skills and infrastructure can improve lives. The reaffirmed commitment to the Mmopane–Block 8 road is welcome for the prospect of better transport links for surrounding communities.China has shown willingness to assist Botswana, and government deserves credit for securing these commitments. However, the success of our...

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