Thursday, July 29, 2010

BIFM Economic Review - 2nd Quarter 2010

The Botswana Insurance Finance Management (BIFM) Economic Review indicates economic conditions have continued to improve alongside the global economic recovery. GDP data for the first quarter of 2010 show healthy growth as the mining sector has recovered. There has been an improvement in exports as diamond sales have improved, with diamond prices recovering to pre-crisis levels. Domestically, bank credit growth has returned to healthy levels with a welcome focus on business rather than household lending. And despite the global crisis and recession, employment has continued to grow.

However the report warns that these developments should not be interpreted as suggesting that Botswana has survived the global financial and economic crisis unscathed, or that economic difficulties have passed. The country has a large budget deficit, government borrowing has jumped, and the government’s net financial position has deteriorated sharply. On the exchange rate front the weakening of the pula against the South African Rand continues to be a concern. Click here to read the full report.

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