Mmegi

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
The Boko-led administration has to tread carefully

‘When you make peace withyourself, you make peace with the world’- Maha GhosanandaThis may come at a huge cost if not handled properly. What started off on Labour Day in Letlhakane this year, where Boko was in attendance when the militant lawyer-cum-trade unionist, Robert Rabasimane rebutted the President’s address in defence of the trade union has seemingly spiralled out of control. The issue is now creating a cat-and-mouse type of a...

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