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Botswana Autos Report Q2 2014

Botswana Autos Market: New industry data published

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2014-04-02 11:43:03 - Botswana Autos Report Q2 2014 - a new market research report on

In light of the Bank of Botswana (BoB)´s pursuit of monetary easing , easing price pressures, and new Q2 2013 sales data from the Central Statistics Office, BMI forecasts new and used passenger vehicles sales of 36,831 in 2014, a marginal decline on 2013. Passenger vehicles will continue to be the worst performing segment as consumers face price pressure from persistent inflation, fuel subsidies and rises in passenger vehicle prices. Commercial vehicles (CVs) are expected to outperform as mining and construction sectors burgeon as the economy diversifies away from a reliance on diamond exports.

However, BMI cautions that as Botswana´s statistical infrastructure undergoes changes and improvements, forecasts are likely to change over the coming quarters.

While the outlook for consumers has slightly



improved, consumers will continue to be squeezed as inflation remains thanks to high international food and fuel prices and government administered price increases. In line with the view GDP improved in the latter half of 2013 to bring in GDP growth to an estimated 4.4%. We forecast GDP growth of 4.7% in 2014 on the back of rising diamond exports, falling inflation and loose monetary policy and investment in the burgeoning coal sector.

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