Moody's: Crisis strains Botswana

Botswana's A2 government bond ratings balance its strong net creditor position and high institutional capacity against the damage done to its dominant export sector by the global economic crisis, Moody's Investors Service said in a new report on the country.

Botswana was severely affected following the collapse of the demand for luxury goods in late 2008 and early 2009, given the importance of diamonds in its export mix, Moody's said.

The strength and pace at which the global recovery takes place will be crucial in determining Botswana's future economic performance, the agency said.

The outlook is negative, which reflects the strains on the government's finances inflicted by the crisis and the increased challenges for fiscal policy and long-term growth potential associated with the leveling off of diamond output, Moody's added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.