IMF Slashes 2024 Growth Forecast for Botswana Due to Diamond Market Challenges

Monday, 15 July 2024, 03:55
The International Monetary Fund (IMF) has revised Botswana's growth forecast for 2024 significantly downward to 1% from the previous estimate of 3.6%. This adjustment is primarily attributed to reduced diamond production impacting economic growth. The country is facing a widening budget deficit to 6%, up from 3.45%, largely due to decreased mineral revenues. The IMF recommends Botswana to consider slowing down new infrastructure projects to support its economy's recovery.
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IMF Slashes 2024 Growth Forecast for Botswana Due to Diamond Market Challenges

IMF Cuts Botswana's 2024 Growth Forecast

The International Monetary Fund (IMF) has revised Botswana's growth forecast for 2024 significantly downward to 1% from the previous estimate of 3.6%. This adjustment is primarily attributed to reduced diamond production impacting economic growth.

Impact on Budget Deficit

The budget deficit is expected to widen to 6% from 3.45% due to decreased mineral revenues, according to the IMF.

Recommendations for Botswana

  • Slowing Down Infrastructure Projects: The IMF suggests Botswana should consider slowing down new infrastructure projects to aid in economic recovery.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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