|
Botswana: Expert Forecasts Drop in GDP Growth
Real estate news By Mmegi
19 October 2007
Despite the positive outlook of Botswana's economy, the Gross Domestic Product (GDP) is likely to ease due to the levelling off of the diamond sector in the global market, a financial expert has said. Addressing a Business and Executive Banking briefing session at Francistown's Tati River Lodge on Tuesday, the recently appointed Deputy Managing Director of Stanbic Bank, Leina Gabaraane, said despite projects like the US$4 billion Mmamabula Power Project and Tati Nickel Mine's Activox refinery which will contribute significantly to the economy, the GDP will ease because the main contributor to it remains the diamond sector whose market is levelling off.
Gabaraane's presentation included an outlook into economic developments, domestic drivers and offshore market performances. He said export growth for the first quarters of both 2006 and 2007 were reported as impressive, particularly with regard to copper-nickel, meat and textile exports. Government efforts in the diversification of the economy should be commended, even though the recent rise in metals' prices indicates that mining will continue to dominate the export market. "It is encouraging to see that recent statistics show that the consumption of electricity in the non-mining sectors is increasing, a sign that those sectors are (growing).
Economic development is key to diversification and the current focus on the tourism and agriculture sectors will go a long way in stimulating the economy." Gabaraane noted that commercial credit growth remains above the Bank of Botswana's target range of 11 to 14 percent for 2007. A report had noted 2006 as a tough year primarily due to devaluations and increased unemployment. The high annual growth was due to a faster growth in credit to the business sector, which accelerated to 19.3 percent from 14.4 percent in March. Within the business sector, the year-on-year growth in credit to parastatals rose from -11.2 percent to 62.0 percent. The share of credit to the household sector in overall credit decreased from 59.0 percent to 58.5 percent.
Send tips or a Letter to the Editor to editor@updatere.com
|
