Pressure on households seen persisting

Last week, Statistics Botswana released the 2016 full-year economic growth figures, which showed a significant improvement in real gross domestic product (GDP) to 4.3% from a negative growth rate of 1.7% in 2015. However, the statistics show that consumption expenditure remained contained in the year largely due to static disposal incomes for households.

First National Bank Botswana (FNBB) market strategist, Moatlhodi Sebabole said national economic growth still has limited multiplier effect as consumption expenditure growth remained low at 1.7% in 2016, compared to 3.6% and 3.5% in 2014 and 2015 respectively.