Botswana-Economy

Botswana's economic growth contracts in first quarter

APA-Gaborone (Botswana)

A local economic think tank, Econsult has projected that the outlook for Botswana's economic growth this year would be slightly below the 2018 level (comparison of previous quarter of last year to the current quarter), APA learned on Monday.

Citing a recent International Monetary Fund (IMF) report Econsult which is headed by former Bank of Botswana Governor Keith Jeffries projected real GDP growth of 3.9 percent in 2019. 

“Our view is that growth will be within the range of 3.5%-4.0%,” said Econsult in its new 1st quarter bulletin. 

It states that the key challenge is to implement broad-based reforms that will reverse the decline in Botswana’s rankings on business environment rankings.

It says measures such as the tax limit on interest deductions make starting a business more difficult, not easier, and the proposal to make it more difficult for non-citizens to buy property, also discussed in the last issue of the review, makes Botswana less globally integrated, not more.

Similarly, the report says, Botswana should avoid populist measures such as import controls and border closures, which raise the costs of trade and make the country less competitive, not more.

 

KO/as/APA

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