Botswana's economy seen expanding at faster pace this year

Botswana’s economy is projected to expand at a faster pace this year compared to last year as the mining sector benefits from a recovery in the global economy, Finance Minister Kenneth Matambo said on Monday.

Presenting the 2018 budget to parliament, Matambo said GDP growth was projected at 5.3 percent in 2018 from an estimated 4.7 percent expansion in 2017.

Matambo said Botswana’s budget deficit was projected to widen to 3.59 billion pula ($372 million) or 1.8 percent of GDP in the 2018/19 fiscal year from an estimated deficit of 2.42 billion pula or 1.3 percent of GDP in the prior year.

He noted that although the economy is expected to improve in performance, the country’s fiscal position remains tight adding that government will continue to manage expenditure.

“Government sees the expected deficit to be temporal and will therefore be financed by a combination of drawing down on existing loans and cash reserves.”

The country’s fiscal year runs from April to March.