The Bank of Botswana on Tuesday (October 24th) revealed that the country’s Gross Domestic Product grew by 3.2 percent in the past year ended June 2017 compared to a contradiction of 0.7 percent recorded in the corresponding period ending June 2016.
Addressing the media at a briefing following the Monetary Policy Committee (MPC) meeting held at the bank’s headquarters in Gaborone, BoB Governor Moses Pelaelo said the improvement in growth reflects a 4.9 percent increase from the former 3.3 percent in non-mining activity in the same period.
The Governor stated that the mining sector output contracted by 10.1 percent in the twelve months to June 2017 compared to a relatively large contraction of 22.9 percent in the corresponding period in the previous year.
BoB MPC projects that the domestic non-mining output, constrained by continued modest growth in household incomes and restrained by continued economic expansion in major trading partners, will be below trend in the short-to-medium term.
Pelaelo continued that despite the latter, gradual economic recovery is expected in the medium turn in response to an anticipated improvement in external economic conditions.
He also said the central bank through the MPC has reduced the Bank Rate from 5.5 to 5.0 percent and noted that the outlook for price stability remains positive as inflation is forecast to be within the 3-6 percent objective range in the medium term.
The Governor also noted that inflation decreased from 3.4 percent in August to 3.2 percent in September 2017.