IMF SAYS TANZANIA’S PROJECTED 7% GROWTH WITHIN REACH

International Monetary Fund (IMF) said Tanzania's projected economic growth in this year is still within reach, but warned on downside risks. The IMF team lead by Mauricio Villafuerte, visited the country between October 18 and 28 to conduct 5th PSI review.

The team leader, Villafuerte, said in a statement after discussions that the projected growth of 7.0 per cent in 2016 is still within reach.

"However, there are downside risks to economic growth associated with the current tight stance of macroeconomic policies and the slow pace of implementation of public investment," he said.

Though IMF said the target is 7.0 per cent, the government said the growth projection is 7.2 per cent. Nevertheless, IMF said, notable progress has been made in stepping up revenue collections and, based on data for the first quarter.

"[Thus] , the ambitious program target for the 2016/17 fiscal year is within reach. However, current spending has been lower than programmed," the Breton Wood institution said.

The mission welcomed the adoption of the second Five-Year Development Plan. The mission noted that it was essential to improve the dialogue with the private sector and accelerate reforms to bolster the business environment.

Source: NAM NEWS NETWORK