BOB projects better domestic economic performance

Botswana’s economic growth rate for 2017, was lower than the global average

Bank of Botswana (BoB) has projected a better domestic economic performance in 2018 following an unsatisfactory performance in 2017, which was said to have been, ‘lower than the global average’.

The Central Bank Governor, Moses Pelaelo announced the projections at a recent media briefing following a briefing of President Mokgweetsi Masisi and Cabinet Members.

The media economic briefing coincided with the publication of BoB’s 2017 Annual Report, which is published in accordance with the Bank of Botswana Act as a statutory requirement and contains a report on the Bank’s operations and audited financial statements.

Speaking at the briefing, Pelaelo said the recent World Economic Outlook by the International Monetary Fund projects further strengthening of global output to 3.9 percent in both 2018 and 2019, compared to 3.8 percent in the past year (2017).

“Here at home, in 2017, the growth rate was lower than the global average, at 2.4 percent against the initial projection of 4.7 percent. Having said so, going into 2018/2019, it is expected that domestic economic performance will be better,” he enthused.

The Governor further noted that the bank’s performance in 2017 was against the background of notable improvement in global economic prospects, albeit characterized by uncertainty stemming from a continuing environment of low-interest rates and returns, significant currency volatility and net foreign exchange outflows as reflected in both the fiscal and balance of payments deficits.

He also highlighted that the report covers, in the main, the Central Bank’s operations, audited financial statements and economic developments in 2017 and also includes a theme topic on Financial Sector Development, Inclusive and Sustainable Economic Growth.

The report also covers governance and accountability framework for the bank’s performance with respect to the key functions and responsibilities, which include conduct of monetary policy, maintaining financial stability, implementation of the exchange rate policy, design and issuance of currency being the ‘Pula & thebe’, oversight of the country’s payment systems, regulation and supervision of banks, foreign exchange reserves management, provision of banking and settlement services to Government, commercial banks as well as other domestic and international institutions, economic research, policy advice to Government, and production of monetary and financial statistics.

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