Botswana: 2010 Article IV Consultation: Staff Report and Supplement; Public Information Notice on the Executive Board Discussion
IMF Staff Country Reports, September 8, 2010
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- Botswana: 2010 Article IV Consultation: Staff Report and Supplement; Public Information Notice on the Executive Board Discussion
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Bibliographic details
- Published: September 8, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455206582.002
Macroeconomic position and policy stance
- The economy entered the crisis from a position of considerable strength because of past prudent macroeconomic management.
- Macroeconomic policies are being appropriately redirected away from short-term demand management toward medium-term considerations.
- Fiscal policy was strongly countercyclical during the past two years as the government ramped up spending despite a drop in revenues.
Fiscal framework and public balance-sheet management
- The framework for managing the government’s assets and liabilities needs strengthening to cope with a more challenging fiscal environment.
- Implication: improved public asset-liability management arrangements are necessary to sustain fiscal resilience as short-term cyclical supports are scaled back.
Structural and development implications
- The authorities agreed that their development model would need to change.
- Policy focus implied: adapt the development model to structural shifts and the post-crisis fiscal context.