Mmegi

Non-mining GDP to tumble as gov't cash woes worsen

Seeing risks: Jefferis PIC: PHATSIMO KAPENG
Seeing risks: Jefferis PIC: PHATSIMO KAPENG

Economic activity outside the mining sector is expected to suffer knock-on effects of slowed government spending coupled with delayed payments to suppliers, as the economy’s cash crunch takes a turn for the worst, BusinessWeek has learnt.

Non-mining GDP held the fort last year as the only growing sector of the economy, containing a contraction of economic output to negative three percent, which could have been worse if non-mining GDP did not grow at by four percent.

Prominent economist Keith Jefferis said during an economic update shared this week in Gaborone that the non-mining GDP this year would take a nosedive as government spending slows and payments to suppliers continue to stall from government.

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