THE International Monetary Fund IMF has slashed Botswanas 2024 growth forecast to 1 from an earlier April estimate of 3.6 due mainly to lower diamond production, it said in a statement.
The budget deficit is also expected to widen to 6 from 3.45 due to a fall in mineral revenues, urging the diamond-rich southern African country to consider slowing down new infrastructure projects to help the economy.
The continued economic slowdown is mainly due to a fall in diamond production, said IMF said in a statement released late on Friday.
Some fiscal relaxation is warranted this year given the fall in mineral revenues, but the execution of the ambitious capital budget should be slowed down to contain the deterioration of the deficit and prioritise projects with the highest returns, the IMF said.
Lower consumer demand and global economic weakness has lowered the demand outlook for diamonds, traditionally seen as luxury items.
