the first three quarters of 2009 resulted in overall output decreasing by 6. 7 percent. in contrast, non - mining output rose by 12. 4 percent, reflecting the support extended by the government ’ s spending programme, which also contributed to some recovery in business confidence last year. however, as indicated by significantly low growth rates of commercial bank credit, demand remained subdued for both businesses and households. households were also affected by generally low wage increases, and a salary freeze for civil servants. although the annual growth rate of government expenditure slowed significantly in 2009, it was still higher than initially budgeted. as highlighted in the recent budget speech, government expenditure for fiscal year 2009 / 10 is projected to grow by 15. 5 percent compared to the original budget growth rate of 5. 3 percent, which to a large extent, reflected the impact of the sizeable supplementary budget that was approved in december 2009. in order to ease expenditure constraints and finance the larger budget deficit for the fiscal year 2009 / 10 that is projected at p13. 5 billion or 15. 1 percent of gdp, the government borrowed from the african development bank and world bank. a further deficit of a similar magnitude – p12. 1 billion or 12. 2 percent of gdp – is forecast for the fiscal year 2010 / 11, and the government ’ s objective of restoring fiscal balance, through a combination of robust revenue growth and rigorous expenditure control, is expected in 2012 / 13. honoured guests : i wish to emphasise that, while the large deficits in the current economic environment has been appropriate unavoidable and, to a certain extent, affordable, it is essential that the fiscal consolidation required for long - term budget sustainability is achieved going forward. it is urgent that there is increased vigilance in all aspects of macroeconomic management including policy reforms, in order to energise the country ’ s performance in a competitive global environment. this has been underscored by the sovereign credit rating agencies when they recently announced botswana ’ s relatively intact sovereign credit ratings for 2009 of “ a minus ” for standard and poor ’ s and “ a ” for moody ’ s investors service. more importantly, despite the marginal downward revision by standard and poor ’ s, botswana ’ s ratings remain firmly in the investment grade, and are still the highest in africa. it was, however, against the background of lacklustre economic fundamentals that monetary policy was conducted in 2009. in light of the positive inflation outlook and low inflation, the bank loosened

further to go to achieve a healthy economy, and i am certain that small businesses will continue to play a critical role in reaching that objective. i am honored to be addressing the owners of 53 small businesses whose excellence exemplifies the enormous contributions that millions of small businesses collectively make to our economy. you come from different places and have achieved success in a wide variety of ways, but you all share the entrepreneurial spirit that has always been central to our nation ’ s prosperity. we at the federal reserve are keenly aware of your vital role, and we pledge to continue to do our part in promoting the recovery so that you can continue to help america grow and prosper. thank you. see bureau of labor statistics ( 2014 ), “ business employment dynamics : third quarter 2013, ” press release, april 29. bis central bankers ’ speeches