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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.

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Editor's Comment
Celebrate responsibly, put safety first this holiday

“Safety first is safety always”– Charles M HayesAs most people begin travelling across the country to spend the President’s Holidays with family and friends, there is every reason to embrace the joy and togetherness that this period brings.While holiday periods bring joy, they are sadly often accompanied by a rise in road accidents, violent incidents and other avoidable tragedies. Too often, families that set out to celebrate together end...

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