{
  "title": "IMF Staff Completes 2023 Article IV Mission to Botswana",
  "publication": "IMF News, July 14, 2023",
  "sourceUrl": "https://www.imf.org/en/news/articles/2023/07/14/pr23263-botswana-imf-staff-completes-2023-article-iv-mission-to-botswana",
  "canonical": "https://www.imf.org/en/news/articles/2023/07/14/pr23263-botswana-imf-staff-completes-2023-article-iv-mission-to-botswana",
  "overlayPath": "/en/news/articles/2023/07/14/pr23263-botswana-imf-staff-completes-2023-article-iv-mission-to-botswana/index.md",
  "summary": "“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. The recovery from the pandemic primarily reflects elevated mining production, but also robust manufacturing and construction.",
  "publishDate": "2023-07-14",
  "sections": [
    {
      "heading": "Recent economic performance",
      "content": "- Growth:\n  - \"Almost 12 percent growth in 2021\"\n  - \"5.8 percent in 2022\"\n  - Long-run average: \"4 percent\"\n- Drivers of recovery:\n  - Elevated mining production\n  - Robust manufacturing and construction\n- Inflation:\n  - Peaked at \"14.6 percent in August 2022\"\n  - Fallen to \"4.6 percent in June 2023\"\n  - Bank of Botswana’s medium-term objective range: \"3 - 6 percent\"\n  - Lower oil prices caused a steep decline in transport inflation\n- Fiscal position:\n  - Improved from a \"2.4 percent of GDP deficit in FY2021\" to a \"balanced budget in FY2022\"\n  - Improvement mainly due to measured expenditure growth and higher mineral revenue\n- Monetary policy:\n  - Bank of Botswana policy rate maintained at \"2.65 percent since August 2022\"\n  - Prior increases: \"a combined 151 basis points between April and August 2022\""
    },
    {
      "heading": "Outlook and projections",
      "content": "- Growth projections:\n  - \"Growth is expected to slow from 5.8 percent in 2022 to 3.8 percent in 2023\"\n  - Reasons: projected decline in diamond production and weaker global environment\n  - Forecast: rebound gradually in 2024 and 2025, to above \"4 percent\" due to higher prices and quantities of diamonds produced\n- Inflation projection:\n  - \"Monthly inflation is projected to remain within the Bank of Botswana’s medium-term objective range of 3 - 6 percent this year and next\"\n  - Factors: decline in international oil prices, positive real lending rates, prospect of regulated prices remaining unchanged\n  - Policy implication: monetary stance appropriate, but central bank should be ready to raise the policy rate if inflation risks materialize\n- Fiscal projection:\n  - Fiscal deficit projected to widen by \"about 2 percent of GDP in FY2023\", mostly due to higher budgeted capital expenditure\n  - Government plans to improve the fiscal position by \"2½ percent of GDP\" over the subsequent two years and achieve a small fiscal surplus by containing the wage bill and transfers\n  - Emphasis: consolidation critical to preserve fiscal sustainability and support FX reserves\n  - Concern: large depletion of government deposits in recent years and longer-term prospects of exhaustion of diamond resources call for fiscal prudence"
    },
    {
      "heading": "Monetary and financial sector assessment",
      "content": "- Monetary policy stance: described as appropriate given inflation developments\n- Financial sector soundness:\n  - \"The financial sector is sound, stable, and resilient.\"\n  - Recommendations to strengthen financial stability:\n    - Operationalize frameworks for emergency liquidity assistance, deposit insurance, and bank resolution\n    - Continue to enhance financial sector supervision\n    - Deepen interbank and bond markets to support financial sector development\n    - Improve public financial management and monetary policy transmission"
    },
    {
      "heading": "Structural reforms and policy recommendations",
      "content": "- Need for supply-side structural reforms to support diversification and increase the relative size of the private sector\n- Expected outcomes: boost growth potential, reduce unemployment, enhance resilience to external shocks\n- Policy priorities listed:\n  - Trade facilitation and integration\n  - Parastatal reform\n  - More efficient and climate-resilient infrastructure investment\n  - More targeted support for high-productivity, export-oriented sectors"
    },
    {
      "heading": "Mission details and statement",
      "content": "- Mission dates and leadership:\n  - IMF team visited Gaborone from \"July 4-14, 2023\"\n  - Mission led by Mr. Luc Eyraud, Division Chief in the IMF African Department and Mission Chief for the Republic of Botswana\n- Nature of release:\n  - End-of-Mission press release conveying preliminary findings; views are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board\n- Closing remarks:\n  - IMF staff thanked the authorities for the \"highly constructive dialogue during the Article IV consultation.\"\n\nPress Release No. 23/263 — IMF Staff Completes 2023 Article IV Mission to Botswana\n\n---\n\n\n References\n\n- Botswana and the IMF\n- IMF Policy Advice -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2023/07/14/pr23263-botswana-imf-staff-completes-2023-article-iv-mission-to-botswana"
    }
  ],
  "bullets": [
    "[Markdown version](/en/news/articles/2023/07/14/pr23263-botswana-imf-staff-completes-2023-article-iv-mission-to-botswana/index.md)",
    "[Structured JSON version](/en/news/articles/2023/07/14/pr23263-botswana-imf-staff-completes-2023-article-iv-mission-to-botswana/index.json)",
    "[Bundle manifest](/en/news/articles/2023/07/14/pr23263-botswana-imf-staff-completes-2023-article-iv-mission-to-botswana/bundle-manifest.json)",
    "Published: July 14, 2023",
    "Growth:",
    "Drivers of recovery:",
    "Inflation:",
    "Fiscal position:",
    "Monetary policy:",
    "Growth projections:",
    "Inflation projection:",
    "Fiscal projection:",
    "Monetary policy stance: described as appropriate given inflation developments",
    "Financial sector soundness:",
    "Need for supply-side structural reforms to support diversification and increase the relative size of the private sector",
    "Expected outcomes: boost growth potential, reduce unemployment, enhance resilience to external shocks",
    "Policy priorities listed:",
    "Mission dates and leadership:",
    "Nature of release:",
    "Closing remarks:",
    "[Botswana and the IMF](http://www.imf.org/external/country/BWA/index.htm)",
    "[IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)",
    "[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/2023/07/14/pr23263-botswana-imf-staff-completes-2023-article-iv-mission-to-botswana/index.md",
    "json": "/en/news/articles/2023/07/14/pr23263-botswana-imf-staff-completes-2023-article-iv-mission-to-botswana/index.json",
    "bundleManifest": "/en/news/articles/2023/07/14/pr23263-botswana-imf-staff-completes-2023-article-iv-mission-to-botswana/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-26T02:15:43.636Z"
}