Gaborone - Botswana's economy is forecast to grow by 4.9 percent this year, its central bank said on Tuesday.
The growth would be lower than the revised estimate of 5.2 percent for 2014, said the central bank's monetary policy statement launched by Bank of Botswana governor Linah Mohohlo.
Non-mining output growth in Botswana was expected to be above trend in the medium-term.
“The results of business expectations survey conducted by the bank show some modest expectations of the improvement in economic prospects in 2015, with export-oriented business more confident than domestic-oriented business.”
The country's power and water problems could dampen economic activity in future.
Botswana, which also imports power from Eskom, faces power supply situations against the backdrop of the non-completion of the Morupule B power station.
Equally, the mining-rich country also faces a water crisis, as the Gaborone Dam was less than four percent full.
Turning to inflation, the bank said it was expected to remain within the three to six percent range in the medium-term.
“The formulation and implementation of monetary policy will focus on entrenching expectations of low and sustainable inflation in the medium-term, through timely responses to price changes, while ensuring that credit and other market developments are consistent with lasting financial stability,” said the bank.
Sapa