Macroeconomic Forecast Botswana

February 2008 | Macroeconomic Forecasts

Economic growth might slow moderately this year, but the outlook remains pleasing based on strong FDI activity. Inflation (coming in at 8.1% y-o-y in December 2007) remains a problem, sticking stubbornly above the central bank's target range of 4-7%. Botswana is heavily reliant on imports, including fuel and food, both of which are trading on international and regional markets at a premium. Nonetheless, the pula has remained roughly stable, helped by a steady policy interest rate stance, and the 'crawling peg' exchange rate regime looks stable.

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