Stimulus package could hurt economy � economists
Friday, October 30, 2015
In a recent economic review for the third quarter of 2015, analysts from Econsult Botswana, Keith Jefferis, Brandon Basele and Sethunya Sejoe argued that in some respects, the stimulus package could make things worse. The experts indicated that the real cause of slowing growth is not the absence of government spending, but a lack of competitiveness.
“Analysis of the likely impact of the stimulus package is difficult in the absence of information regarding its content, timing, magnitude and funding. However, indications are that it will be large, and will be implemented as soon as possible,” stated the economists in the review.
While the political shift brings hope for change, it also places immense pressure on the new administration to deliver on its election promises in the face of serious economic challenges.On another level, newly appointed Finance Minister Ndaba Gaolathe’s grim assessment of the country’s finances adds urgency to the moment. The budget deficit, expected to be P8.7 billion, is now anticipated to be even higher due to underperforming diamond...