Botswana: 2021 Article IV Consultation — Press Release; Staff Report; and Statement by the Executive Director for Botswana
IMF Staff Country Reports, June 2, 2021
Source details
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- Botswana: 2021 Article IV Consultation — Press Release; Staff Report; and Statement by the Executive Director for Botswana
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Bibliographic details
- Published: June 2, 2021
- Series: IMF Staff Country Reports
Overview
- Publication date: June 2, 2021
- Core message: Botswana entered the COVID-19 crisis with larger buffers than most countries, but significantly less than in the past; the pandemic exacerbated pre-existing structural challenges and negative external shocks, producing sharp economic contraction and wider deficits.
Economic impact and external sector
- Botswana experienced a sharp GDP contraction described as "among the strongest in SSA."
- The current account deficit widened during the pandemic.
- Foreign exchange reserves "dropped further, though still remaining well above adequate levels."
- Pre-pandemic weaknesses included a "significant weakening of international reserves coverage."
Fiscal developments
- The fiscal deficit "widened significantly" as the government responded to COVID-19.
- The government implemented a "sizeable public wage increase agreed in 2019."
- The widened deficit was financed partially by drawing down on the Government Investment Account.
Structural challenges and policy context
- Pre-existing conditions included:
- Structural challenges
- Persistent negative external shocks
- Delays in adjustment
- High unemployment
- The pandemic aggravated these vulnerabilities, intensifying pressures on reserves and the fiscal position.
Key subjects and keywords (as presented in the source)
- Subjects: COVID-19, Environment, Expenditure, Fiscal policy, Fiscal stance, Health, International organization, Monetary policy, Non-renewable resources, Public debt
- Keywords: balance of payments statistics manual, Bo tswa na authorities, COVID-19, e-government service, Fiscal stance, Global, government securities issuance program, government treasury bill market, liability positions vis-à-vis nonresident, Non-renewable resources
International Monetary Fund. Botswana: 2021 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Botswana (June 2, 2021), Country Report No. 2021/098.
Content in this bundle
- 1. The COVID-19 Pandemic