Botswana: 2024 Article IV Consultation-Press Release and Staff Report

Botswana

WASHINGTON, 10 September 2024 / PRN Africa / -- Summary:is experiencing a significant slowdown from a diamond market contraction in 2023–24. Inflation has declined sharply since the peak of mid-2022 and returned to the central bank’s objective range, where it is expected to remain in the medium term. The authorities plan a fiscal expansion in FY2024 followed by two years of substantial adjustment to reach a fiscal surplus by FY2026. The external position should soften over the medium term, with FX reserves decreasing to 5 months of imports. The financial sector remains sound and stable despite the economic downturn.

SOURCE International Monetary Fund (IMF)