GABORONE, July 18 (Xinhua) -- Companies in Botswana are confident that the economy records a positive trajectory during the second half of the year.
"Firms are confident about business conditions in the second quarter of 2019," said the latest central bank Business Survey report released on Wednesday.
The analysis, however, notes that the level of optimism declines in the third quarter of 2019, consistent with the anticipated higher cost pressures.
"Firms expect the economy to grow by 3.8 percent in 2019, lower than the 4.2 percent projection stated in the 2019 Budget Speech," said the report.
"Furthermore, on average, firms expect inflation to be slightly below 4 percent, which is consistent with the Bank's projection that inflation will remain within the objective range of 3 - 6 percent in the medium term," read the report.
Positives expected to propel the economy are being derived from the political climate, domestic demand and the current exchange rate, which are viewed as being the most supportive factors to doing business in Botswana during the second quarter of 2019.
The report also observed that water and electricity subsectors reportedly contribute positively to economic activity.
"There are ongoing efforts to improve the supply of these utilities through measures such as the implementation of the North-South Carrier 2 water project and the North-West Transmission Grid electricity connection," it said.
