Botswana: 2006 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Authorities for Botswana
IMF Staff Country Reports, July 3, 2007
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- Botswana: 2006 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Authorities for Botswana
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Bibliographic details
- Published: July 3, 2007
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451806458.002
Summary
- The staff report highlights economic developments and monetary and exchange rate policy for Botswana.
- Botswana’s growth has been fueled by continued increases in diamond production.
- Real diamond output is projected to level off, and then decline sharply after about 15 years.
- Diversification of the economy will require implementation of substantial structural reforms, in particular the authorities’ planned reforms in labor markets, the investment environment, and the role of parastatals.
Key findings and projections
- Continued increases in diamond production have been the primary driver of growth.
- Real diamond output trajectory:
- Projected to level off.
- Projected to decline sharply after about 15 years.
- Implication: Without diversification, growth risks being unsustainable once diamond output declines.
Policy recommendations and structural priorities
- Implement substantial structural reforms to support diversification, with emphasis on:
- Labor market reforms.
- Reforms to improve the investment environment.
- Reassessment and reform of the role of parastatals.
- Monetary and exchange rate policy considerations are central to the analysis (highlighted in the staff report).
Publication and metadata (as provided)
- Publication title: Botswana: 2006 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Authorities for Botswana
- Date on page: July 3, 2007
- Pages: 49
- Volume: 2007
- Issue: 227
- Series: Country Report No. 2007/227
- DOI: https://doi.org/10.5089/9781451806458.002
- Stock No: 1BWAEA2007002
- ISBN: 9781451806458
- ISSN: 1934-7685
- Subjects: Education, Exchange rates, Expenditure, Income, Inflation, Inflation targeting, Monetary policy, National accounts, Prices
- Keywords: Africa, Botswana, CR, Income, Inflation, inflation data, inflation expectation, inflation objective, Inflation targeting, ISCR, outturn, price data, staff appraisal, Sub-Saharan Africa
Botswana: 2006 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Authorities for Botswana