{
  "title": "Botswana: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Botswana",
  "publication": "IMF Staff Country Reports, March 27, 2020",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2020/03/18/botswana-2019-article-iv-consultation-press-release-staff-report-and-statement-by-the-49276",
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  "summary": "This 2019 Article IV Consultation focuses on Botswana near- and medium-term challenges and policy priorities and was prepared before COVID-19 became a global pandemic and resulted in unprecedented strains in global trade, commodity, and financial markets.",
  "sections": [
    {
      "heading": "Near- and medium-term growth outlook",
      "content": "- Gross domestic product growth is forecasted to pick up to 4.4 percent in 2020 and 5.6 percent in 2021 as the diamond industry recovers somewhat, and a new copper mine comes on stream.\n- Growth will ease back to around 4 percent over the medium term.\n- Risks to the outlook include:\n  - faster-than-anticipated slowdown in key trading partners,\n  - shifts in consumer preferences to synthetic diamonds,\n  - climate shocks."
    },
    {
      "heading": "Fiscal stance and consolidation",
      "content": "- The size and pace of the planned adjustment are consistent with Botswana’s fiscal space.\n- The composition of the adjustment should protect efficient capital and social spending.\n- Given that buffers are being eroded, it is critical that consolidation starts as envisaged in FY2020.\n  - Starting consolidation as envisaged would help start addressing external imbalances and contribute to a gradual rebuilding of buffers over the medium term."
    },
    {
      "heading": "External sector and resilience",
      "content": "- Addressing external imbalances is a priority linked to fiscal consolidation and buffer rebuilding.\n- Building resilience to shocks is emphasized given exposure to commodity cycles and climate risks."
    },
    {
      "heading": "Financial sector and monetary transmission reforms",
      "content": "- To strengthen the monetary transmission mechanism and deepen the domestic financial market there is a need to:\n  - develop the secondary market for government securities,\n  - leverage Fintech,\n  - facilitate the attachment of collateral,\n  - improve credit information."
    },
    {
      "heading": "Key policy recommendations (summary)",
      "content": "- Begin fiscal consolidation in FY2020 to rebuild buffers and address external imbalances.\n- Ensure consolidation protects efficient capital and social spending to preserve growth-enhancing and equity-promoting expenditures.\n- Implement financial market reforms to deepen markets and improve monetary transmission, including secondary market development, Fintech adoption, collateral facilitation, and credit information enhancement.\n\nSource: Botswana: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Botswana\n\n---\n\n Content in this bundle\n\n- 1bwaea2020002\n  - 1bwaea2020002 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1bwaea2020002 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: March 27, 2020",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781513537375.002",
    "Gross domestic product growth is forecasted to pick up to 4.4 percent in 2020 and 5.6 percent in 2021 as the diamond industry recovers somewhat, and a new copper mine comes on stream.",
    "Growth will ease back to around 4 percent over the medium term.",
    "Risks to the outlook include:",
    "The size and pace of the planned adjustment are consistent with Botswana’s fiscal space.",
    "The composition of the adjustment should protect efficient capital and social spending.",
    "Given that buffers are being eroded, it is critical that consolidation starts as envisaged in FY2020.",
    "Addressing external imbalances is a priority linked to fiscal consolidation and buffer rebuilding.",
    "Building resilience to shocks is emphasized given exposure to commodity cycles and climate risks.",
    "To strengthen the monetary transmission mechanism and deepen the domestic financial market there is a need to:",
    "Begin fiscal consolidation in FY2020 to rebuild buffers and address external imbalances.",
    "Ensure consolidation protects efficient capital and social spending to preserve growth-enhancing and equity-promoting expenditures.",
    "Implement financial market reforms to deepen markets and improve monetary transmission, including secondary market development, Fintech adoption, collateral facilitation, and credit information enhancement.",
    "**1bwaea2020002**"
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