{ "title": "Press Release: Statement at the Conclusion of an IMF Mission to Botswana", "publication": "IMF News, June 1, 2012", "sourceUrl": "https://www.imf.org/en/news/articles/2015/09/14/01/49/pr12201", "canonical": "https://www.imf.org/en/news/articles/2015/09/14/01/49/pr12201", "overlayPath": "/en/news/articles/2015/09/14/01/49/pr12201/index.md", "summary": "Mission period: May 21-June 1, 2012.", "publishDate": "2012-06-01", "sections": [ { "heading": "Economic outlook and growth", "content": "- Mission period: May 21-June 1, 2012.\n- Real GDP growth forecast:\n - Overall real GDP growth would be about 4 percent in 2012 compared to 5 percent in 2011.\n- Sectoral notes:\n - International diamond market showed some signs of recovery in the first quarter of 2012, following a relatively poor performance towards the end of 2011.\n - Non-mining GDP growth is likely to moderate on the back of the imminent completion of large construction projects.\n- Risk assessment:\n - The current fragile external environment poses considerable uncertainty on the global economic outlook and mineral export demand.\n - Policy implementation ahead will require a delicate balancing act." }, { "heading": "Inflation and monetary policy", "content": "- Inflation status:\n - Inflation is currently higher than the Bank of Botswana’s medium-term objective range of 3 -6 percent, but has trended downward in recent months.\n - At this stage, there appears to be no firm evidence of generalized price pressures in the domestic economy.\n- Policy stance:\n - The mission supports the Bank of Botswana’s current accommodative monetary policy stance." }, { "heading": "Fiscal policy, budget and revenue measures", "content": "- FY2012/13 Budget assessment:\n - Mission commends the Government of Botswana’s FY2012/13 Budget which targets a small fiscal surplus.\n - The budget is centered on further expenditure restraint while improving the quality of spending to ensure value for money.\n- Fiscal recommendations:\n - Continue emphasis on expenditure control given the government’s spending envelope (above 30 percent of GDP) is high by international standards.\n - Undertake a thorough assessment of pockets of unproductive spending and ways to increase efficiencies.\n - Rebalance revenue-raising and expenditure-cutting measures.\n - Complement budget measures with policies that widen the domestic tax base and prepare the economy for an eventual decline in diamond revenues.\n - Specific revenue measures include a judicious rationalization of tax exemptions and improvements in tax administration to broaden the revenue base." }, { "heading": "Financial sector development and inclusion", "content": "- Progress and gaps:\n - Botswana’s financial system has grown and diversified considerably over the last decade.\n - The level of financial intermediation is relatively low compared with other high middle-income countries although it has improved in more recent years.\n- Policy support:\n - Mission welcomes government emphasis to broaden access to financial services and improve financial intermediation, consistent with Vision 2016 and National Development Plan (NDP) 10.\n - Mission welcomes emphasis in the FY2012/13 budget speech on enhancing the capacity of Non-Bank Financial Institutions Regulatory Authority (NBFIRA)." }, { "heading": "Poverty, unemployment, and economic diversification", "content": "- Social and labor priorities:\n - Government emphasis on poverty eradication, inclusive growth, tackling high unemployment, and diversifying the economy is well placed.\n - Considerable strides have been made towards reducing absolute poverty as reflected in the Botswana Core Welfare Indicators survey of 2009/10.\n- Recommendations to tackle unemployment and inequality:\n - Encourage greater financial inclusion and measures to target inequality at its sources to enhance inclusive growth.\n - Achieving lower unemployment will require faster economic growth and addressing distortions in the labor market including the skill mismatch.\n - Support for tertiary education reform program, establishment of the Human Resource Development Council, and the graduates’ internship program to help address skill mismatch.\n - Urges the government to move ahead with regulatory reforms to improve the business climate to support the Economic Diversification Drive (EDD)." }, { "heading": "Closing remarks", "content": "- Mission appreciation:\n - The mission thanks the authorities for warm hospitality, timely provision of required information, productive and open discussions, and excellent cooperation during the mission.\n\nPress Release: Statement at the Conclusion of an IMF Mission to Botswana — June 1, 2012\n\n---\n\n\n References\n\n- Botswana and the IMF\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr12201" } ], "bullets": [ "[Markdown version](/en/news/articles/2015/09/14/01/49/pr12201/index.md)", "[Structured JSON version](/en/news/articles/2015/09/14/01/49/pr12201/index.json)", "[Bundle manifest](/en/news/articles/2015/09/14/01/49/pr12201/bundle-manifest.json)", "Published: June 1, 2012", "Mission period: May 21-June 1, 2012.", "Real GDP growth forecast:", "Sectoral notes:", "Risk assessment:", "Inflation status:", "Policy stance:", "FY2012/13 Budget assessment:", "Fiscal recommendations:", "Progress and gaps:", "Policy support:", "Social and labor priorities:", "Recommendations to tackle unemployment and inequality:", "Mission appreciation:", "[Botswana and the IMF](http://www.imf.org/external/country/BWA/index.htm)", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2015/09/14/01/49/pr12201/index.md", "json": "/en/news/articles/2015/09/14/01/49/pr12201/index.json", "bundleManifest": "/en/news/articles/2015/09/14/01/49/pr12201/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T19:09:19.817Z" }