The ratings on the Republic of Botswana reflect the sovereign's strong financial position, a well-managed and growing minerals-based economy, and political stability, offset by the narrow economic base, high inflation, and the challenges to growth posed by the country's large development needs. The public sector net external asset position, projected at 134% of current account receipts (CARs) in 2007, is among the highest recorded by any rated sovereign, and continues to bolster the government's capacity to absorb potential shocks. Total government debt is low, at about 6% of GDP, comprising mainly domestic debt issued to develop a domestic bond market, and multilateral external debt. The general government balance should achieve a high surplus of about 6% of GDP in fiscal
