Botswana: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Botswana
IMF Staff Country Reports, August 31, 2023
Source details
- Canonical URL
- Botswana: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Botswana
Other formats
Bibliographic details
- Published: August 31, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400251474.002
Economic performance and outlook
- Following a strong recovery of almost 12 percent growth in 2021, Botswana’s economy grew by 5.8 percent in 2022, significantly above the long-run average of 4 percent.
- Growth is expected to slow in 2023 due to a projected decline in diamond production, with the weaker global environment likely to depress other exports.
- Inflation has fallen since August 2022, returning to the central bank’s objective range.
Fiscal policy stance and plans
- The authorities plan a fiscal expansion in FY2023 followed by two years of substantial fiscal adjustment to reach a small fiscal surplus by FY2025.
- Implementation risks to the planned fiscal adjustment are elevated.
Structural transformation and policy objectives
- Structural transformation of the economy aims at:
- diversifying production,
- increasing the relative size of the private sector,
- enhancing resilience to external shocks.
Subject areas and keywords (as listed)
- Central bank policy rate
- Expenditure
- Financial Sector Assessment Program
- Financial sector policy and analysis
- Financial services
- Fiscal policy
- Fiscal stance
- Inflation
- International organization
- Monetary policy
- Prices
- Keywords: Africa, Botswana authorities, Central bank policy rate, Financial Sector Assessment Program, Fiscal stance, Global, government action, Inflation, inflation risk, liability positions vis-à-vis nonresident, PPI coverage, Sub-Saharan Africa, transmission mechanism
Content in this bundle
- 1bwaea2023002 — Real Sector Developments