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Stimulus desperately needed but unlikely – StanChart

Seeking relief: Gaolathe on Wednesday told legislators that the government’s financial situation remained highly strained
Seeking relief: Gaolathe on Wednesday told legislators that the government’s financial situation remained highly strained

As public spending continues to shrink and the economy battles for stability, economists believe the private sector needs a cash injection through a stimulus, but this remains highly unlikely as the holes in government’s pockets get bigger and bigger.

Government spending in the economy through issuance of government purchase orders (GPO) and procurement of goods and services from the private sector remains constricted as government tightens its belt in the wake of declining revenues.

Unveiling its latest economic outlook update on Wednesday, Standard Chartered Bank Botswana economists shared that ordinarily constrained government spending in the country would necessitate a stimulus response through massive cash injection to improve liquidity and spending in the economy.

Editor's Comment
Warm relations must not come at the expense of fair trade

“I believe that free but fair trade isan absolute imperative”– John E. JamesFor two countries bound by geography, history and deep economic ties, periods of diplomatic strain serve neither side well. President Duma Boko’s efforts to restore momentum to relations with Pretoria deserve recognition, particularly at a time when Southern Africa faces shared challenges ranging from sluggish economic growth and unemployment to energy security...

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