Mood's forecasts 7% drop for Botswana's economy

Leading credit ratings agency, Moody’s expects Botswana’s (gross domestic product) GDP to contract by seven percent this year, a more optimistic outlook than government’s own forecast of a 13.1% drop.

In a position announced recently, Moody’s however affirmed the country’s long-term local and foreign currency issuer ratings at A2, amongst the highest in Africa. The status means Botswana is one of the continent’s best borrowers and technically one of the best countries to raise international capital from.

In the latest update, Moody’s said the expected seven percent contraction would be due to the sharp slowdown in domestic demand and the disruptive impact of the coronavirus (COVID-19) on the mining sector, particularly diamonds.

Editor's Comment
Deficit relief must not invite complacency

“Financial freedom is more of ajourney than a destination.”– Rob BergerThe preliminary 2026–2027 budget deficit has been revised down to P9 billion, which is an equivalent to 3.1 percent of Gross Domestic Product (GDP). It is an improvement from the P26 billion or 8.9 percent of GDP projected in February.This P17 billion improvement is significant and deserves acknowledgement.Government’s restraint on non-essential expenditure, tighter...

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