africa Economy FDI Finance Tanzania

IMF: Tanzania has strong path to economic growth

The International Monetary Fund (IMF) has lauded Tanzania for its cooperation with the Fund’s managers and prudent measures adopted so far to substantially improve the country’s economy.

Director General of Tanzania Information Services (MAELEZO) and Chief Government Spokesperson, Dr Hassan Abbasi told a press conference here yesterday when briefing reporters on the Fund’s latest economic performance assessment of seven African countries.

“Our economy has been growing at an average of 6.8 per cent in the first half of 2017,” he said. “This remains among higher rates in developing countries across the globe.” Dr Abbas said the IMF has described Tanzania as a country “with a strong path to growth.”

Other countries which were involved in the assessment include, Mozambique, Nigeria, Senegal, Rwanda, Uganda and Cape Verde. The IMF team was led by Mauricio Villafuerte and completed its assignment on December 12, this year.

He said the findings show that Tanzania’s economy was strong compared to other countries under assessment that include Rwanda and Mozambique. He went on to note that Tanzania remained on track as it recorded significant progress in all sectors of the economy.

A recent World Bank report indicated that in the 2010s, Tanzania was among the fastest growing economies in the world, recording a single digit inflation of 4 per cent and a decline in interest rates to the lowest level in four decades.

“The 6.8 per cent economic growth rate was a huge mileage for our nation. This means we managed to beat other countries including those in Europe,” Dr Abbasi said. IMF was equally surprised on how the country had managed to lower its inflation rate to 4.4 per cent down from the projections of 5 per cent.

But, he explained that such decline in inflation rate was augmented by a raise in agro crop production early this year, that subsequently reduced the price of food crops in the local market.

Source: DailyNews

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