Botswana’s central bank on Thursday projected GDP to increase by 4.2 percent in 2019.
Bank of Botswana Governor Moses Pelaelo said the significant influences on domestic economic performance include conducive financing conditions as indicated by an accommodating monetary policy and a sound financial environment that facilitate policy transmission, intermediation and risk mitigation.
“Moreover, it is anticipated that the increase in government spending, as well as implementation of initiatives, such as the doing business reforms, should also be supportive of economic activity,” said Pelaelo.
Overall, he said, the economy is projected to operate close to, but below full capacity in the short to medium term, thus posing no upside risk to the inflation outlook.
“The Bank of Botswana decided to maintain the Bank Rate at 5 percent. Inflation was below the lower bound of the Bank’s objective range of 3 – 6 percent in April and May 2019, mainly reflecting base effects associated with the increase in public transport fares and electricity tariffs in the second quarter of 2018,” said Pelaelo.
KO/as/APA