Botswana’s business confidence in the third quarter of 2019 sank to its lowest level compared to the previous quarter, according to a new report by the Bank of Botswana.
The report, released on Tuesday, 8 October 2019, suggests that firms were less optimistic about economic activity in the third quarter of 2019 compared to the second quarter of 2019.
Overall, businesses expected a decrease in exports of goods and services; profits; and investment in buildings, plant and machinery, vehicles and equipment, and ‘other’ category in the third quarter of 2019.
According to the report, firms are less optimistic about economic performance in 2019, with an expected output growth of 3.5 percent, which is less than the 2019 Budget Speech projection of 4.2 percent and the 4.5 percent growth in 2018.
Regarding quarterly performance, firms expected a decline in economic performance in the third quarter compared to the second quarter of 2019, mainly attributable to weak economic conditions: a decline in exports of goods and services; profits; investment in buildings, plant and machinery, vehicles and equipment; and ‘other’ investments
The Bank’s quarterly Business Expectations Survey (BES) collects information on the domestic business community’s perceptions about the prevailing state of the economy and prospects.
In the survey, businesses respond to a range of questions relating to, among others: the business climate; outlook for economic growth; inflation and business performance over the period covered by the exercise.