Botswana economy expected to grow 4 percent in 2014 – Khama

The Botswana economy is expected to benefit from increased export demand as world recovery gains traction following the world’s worst global recession.
President Ian Khama said on Monday in his State of the Nation Address that the export led domestic economy is projected to grow by just over 4 percent in both 2013 and 2014.
On the other hand, the world economy is currently projected by the International Monetary Fund (IMF) to grow by 2.9 percent and 3.6 percent in 2013 and 2014 respectively, with modest expansion in both advanced and developing economies.
Statistics Botswana data has shown that Botswana’s Gross Domestic Product (GDP) expanded by 3.6 percent during the twelve months through March 2013, reflecting a 5.2 percent increase in non-mining GDP but a contraction of 6.1 percent in the mining sector.
In August this year, Botswana recorded a trade surplus of P1, 483.6 million, which was brought about by an increase in exportation of rough diamonds.
 However, the data shows that total exports were valued at P6, 441.5 million, reflecting a decrease of 6.2 percent (P424.7 million) from the July 2013 value of P6, 866.2 million. The August 2013 total exports increased by 35.8 percent (P1, 699.3 million) from the total value of exports recorded in August 2012, this stood at P4, 742.2 million.
 At the same time, total imports were valued at P4, 957.9 million, showing a decrease of 28.6 percent (P1, 986.6 million) from the July 2013 value of P6, 944.5 million. In comparison to the August 2012 total imports which recorded P5, 780.9 million, the August 2013 value decreased by 14.2 percent
(P823.0 million)
“Continued Euro zone uncertainties, drought and animal disease outbreaks, as well as water shortage, pose significant threats,” Khama warned.
He further noted that the energy, agriculture and mining sectors continue to experience constraints and subdued growth.
Recently policy makers at the Ministry of Finance and Development Planning said at a Budget Pitso that although cabinet has approved a surplus budget for the 2013/14 financial year, which envisages a surplus budget, it might not be possible to achieve such, ‘should revenue not over perform’.
Preliminary estimates show that the government’s total revenue and grants will grow by a marginal 2.5 percent in 2013/14, compared to 11 percent in 2012/13. At the same time, marginal or no growth is expected among major revenue items during the year, with customs revenue estimated to decline by 3.9 percent.