Global Finacial Stability Report - January 2011

The report shows that ever since the financial crisis about four years ago, global financial stability is still not assured and significant policy challenges remain to be addressed. Balance sheet restructuring is incomplete and proceeding slowly, and leverage is still high. The interaction between banking and sovereign credit risks in the euro area remains a critical factor, and policies are needed to tackle fiscal and banking sector vulnerabilities. At the global level, regulatory reforms are still required to put the financial sector on a sounder footing. At the same time, accommodative policies in advanced economies and relatively favorable fundamentals in some emerging market countries are spurring capital inflows. Consequently, policymakers in emerging market countries will need to watch diligently for signs of asset price bubbles and excessive credit. Click here to access the report.

World Economic Outlook Update - January 2011

The World Economic Outlook Update (2011) shows that as the global economic recovery continues, activity has moderated less than expected in advanced economies, but growth remains subdued, unemployment is still high, and renewed stresses in the euro area periphery are contributing to downside risks. In many emerging economies, activity remains buoyant, inflation pressures are emerging, and there are now some signs of overheating, driven in part by strong capital inflows. Most developing countries, particularly in sub-Saharan Africa, are also growing strongly. Global output is projected to expand by 4½ percent in 2011, an upward revision of about ¼ percentage point relative to the October 2010 World Economic Outlook (WEO). Click here to access the report.

Bifm Economic Review - Fouth Quarter 2010

According to the BIFM Economic Review Report, Fouth Quarter 2010, Botswana's annual inflation rate is expected to fall to around five percent by mid-year as underlying pressures ease off despite the possible threats posed by rising food and oil prices. The report shows that inflation, which is currently at 7.4 percent, has a positive outlook in 2011 after largely behaving as expected in the second half of 2010 with no great surprises. Click here to access the BIFM Report or here for Mmegi newspaper article on the report.

Botswana's P8bn SACU nightmare

Mmegi newspaper article by Professor Roman Grynberg dicusses the implications of the new formula for the calculation of revenue sharing for the members of the Southern African Customs Union. Professor Grynberg is a Senior Research Fellow at the Botswana Institute of Development Policy Analysis (BIDPA). The article contends that  a group of small economies namely Botswana, Lesotho, Swaziland  are being held hostage by the dominating economic power, South Africa. Botswana is set to suffer irreparable damage if South Africa has its way and the new revenue calculation system is implemented as the country will lose as much as 2 per cent of its GDP. Other SADC countries watch with trepidation for the future of further regional economic integration hangs in the balance. Click here to read more...