(Ecofin Agency) – After the economic recovery in 2021, international financial institutions predict a modest growth in Botswana’s economy in 2022. The IMF believes that reforms are needed to stabilize the country’s economy.
The International Monetary Fund (IMF) has indicated that Botswana needs reforms to strengthen the resilience of its economic growth. The information comes from and Press release published on the institution’s website on Tuesday 31 May.
According to a report by the fund’s team in the country, the impact of rising rates, falling liquidity and the recent monetary policy reform needs to be closely monitored to reduce inflationary pressures.
” Continuing fiscal consolidation, strengthening policy frameworks and advancing structural reforms will be needed to create a more resilient and diversified economy. “, Says the report.
The country is expected to grow by 4.3% this year, compared with 11.4% in 2021. This forecast is due to the context of strong fluctuations in global raw materials and COVID-19 in the country’s main trading partners. According to the IMF team, rising food and energy prices could have a negative impact on food security and energy availability for the most vulnerable sections of the population.
” Relatively weak fiscal reserves and continuing dependence on mining activities expose Botswana to external shocks such as geopolitical and climate shocks. “, The institution reveals.
According to the World Bank, it is the slow pace of economic diversification, declining mineral revenues such as diamonds, and the covid-19 pandemic that have weakened the country’s economy.
“Pop culture maven. Analyst. Writer. Wannabe food evangelist. Organizer. Friendly internet lover. Incurable troublemaker. Entrepreneur.”