Local economists have warned that although Botswana has not yet recorded any cases of the dreaded coronavirus, measures put in place to avoid its transmission are likely to weigh down on the economy.
Economists at think tank Econsult noted that measures such as closure of borders and liquor stores and the banning of tourists from high-risk countries are expected to have devastating effects on the Botswana’s gross domestic product (GDP).
“Our forecast is for GDP growth around minus 4% in 2020, down from a pre-COVID projection of plus 3.5-4.0% growth,” said Econsult, which is led by former deputy central bank governor Keith Jeffries.
They he economists said, the impact on GDP growth could be much worse should there be more business closures, shortages of inputs, and impediments to the movement of freight across the Botswana-South Africa border, which is the main trade artery for the country.
In such a scenario, the short-term contraction in GDP could reach as high as 20%, the think tank warned.
KO/jn/APA