Botswana: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Botswana

International Monetary Fund

No 2025/325, IMF Staff Country Reports from International Monetary Fund

Abstract: Botswana finds itself at a critical juncture, as weak demand for natural diamonds has increased the need to diversify sources of growth. Economic activity is expected to continue contracting this year, reflecting a further drop in diamond production and in non-mineral activity. Inflation is low and expected to stay within the objective range. The financial sector remains sound, though banking sector liquidity has tightened due to the contraction in the diamond sector; increased government financing and higher capital outflows. Despite some austerity measures, the fiscal deficit is expected to increase to more than 8 percent of GDP this year. Unless additional fiscal consolidation measures are adopted, public debt could rise sharply. Given the weak outlook for diamond exports, the current account balance is forecast to remain in deficit in the next few years, contributing to a further decline in international reserves.

Keywords: article IV consultation; Botswana's de jure; currency of Botswana; facto exchange rate arrangement; IMF's article; Exchange rates; Fiscal consolidation; Financial sector; Exchange rate arrangements; Global; Southern Africa (search for similar items in EconPapers)
Pages: 87
Date: 2025-12-08
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=572347 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2025/325

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().