The World Bank's latest forecast is higher than the 4.1 percent projected by the International Monetary Fund (IMF) in April but lower than the Ministry of Finance and Development Planning's 5.9 percent. It is also higher than both the Bank of Botswana's forecasts for growth of around 3.7 percent this year, as well as the sub-Saharan African forecast average of 4.9 percent. All eyes are on Statistics Botswana which is expected to unveil first quarter Gross Domestic Product (GDP) figures next Friday, thus giving guidance on the economy's possible path for the rest of the calendar year.
In its latest GEP, the World Bank also upgraded its forecasts for the local economy in 2014 and 2015, from 4.9 percent and 4.8 percent to 5.1 percent and 5.2 percent respectively.While the World Bank's researchers did not provide details for the marginal downgrade of their Botswana forecast for 2013, the GEP alluded to lower household consumption as being a possible reason. "Consumer spending accounts for some 60 percent of GDP in Sub Saharan Africa, and a major contributor to overall demand growth," the researchers noted."Affected by ongoing fiscal consolidation, in Botswana, household consumption grew at a below trend rate of 2.7 percent in 2012."
