Botswana: 2005 Article IV Consultation—Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statements by the Authorities of Botswana

IMF Staff Country Reports, February 23, 2006

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The staff report highlights key issues, recent developments, and policy discussions related to the 2005 Article IV Consultation on Botswana.
The authorities are strengthening their structural reform agenda and implementing sector-specific development programs aimed at sustaining annual growth in the 5–6 percent range as targeted in their current medium-term development plan.
Authorities recognized the importance of fiscal adjustment for maintaining macroeconomic stability.
Authorities have no plans to move away from the exchange rate peg in the near term, but are exploring options regarding the monetary policy framework.

Growth target: sustaining annual growth in the 5–6 percent range.
Emphasis on fiscal adjustment as central to maintaining macroeconomic stability.
Continued commitment to the exchange rate peg in the near term; active exploration of monetary policy framework options.

Authorities are:
- Strengthening the structural reform agenda.
- Moving ahead with sector-specific development programs.
Objective: support and sustain the medium-term growth target (5–6 percent).

Fiscal policy:
- Fiscal adjustment is recognized as important to macroeconomic stability.
Monetary policy:
- No planned departure from the exchange rate peg in the near term.
- Authorities are exploring options for the monetary policy framework.