26 Apr 2016

The Governor of the Bank of Botswana Ms Linah Mohohlo has returned from Washington DC (USA) where she participated in the spring meetings of the International Monetary Fund (IMF) and the World Bank in her capacity as Botswana’s representative on the non-executive Board of the IMF.

A press release from the Bank of Botswana states that the governor took part in the meetings of the International Monetary and Financial Committee and the IMF’s Africa Group 1 Constituency, which comprises of 23 Sub-Saharan African countries.

The media release says the deliberations included recent economic and financial developments, prospects for global economic growth and related policy responses, as well as respective roles of the IMF and World Bank with respect to funding and other support.

It further notes that it was observed that the global economic outlook was characterised by uncertainty and modest global growth in the context of low commodity prices, volatile financial markets, demographic changes and concerns about China’s transition to lower rates of economic growth.

The statement says global economic growth has been at its lowest since 2009, while future growth has been revised downwards.

 It says that the contribution of advanced countries was muted while emerging markets and other developing economies (which have been the main drivers of economic activity since the financial/economic crisis) were experiencing a slowdown due to country-specific weaknesses and external factors such as tightening financial conditions and capital flow reversals.

It notes that the global economy is projected to grow at 3.2 percent in 2016 and three point five percent in 2017 and respective growth projection rates for Sub-Saharan Africa are three percent and four percent. The governor had consultative bilateral meetings with relevant IMF departments and other related institutions on matters of mutual interest. ENDS