TANZANIA’S Gross Domestic Products (GDP) is tipped to grow
by 7.2 per cent to become the world fourth fastest economy in this year.
According to World Economic Prospect June report the country economy forecasted
to grow at per with India GDP
The report showed that the fastest growing economy in the
world this year is Ethiopian at 8.3 per cent and the fifth globally is Djibouti
at 7.0 per cent. The three non-resourceintensive economies, the only from
Africa in top five, expected to grow well above the Sub Sahara Africa average
growth of 2.6 per cent in this year.
“Growth in SSA is forecast to pick up to 2.6 per cent in
2017, and average 3.4 per cent in 2018-19, slightly above population growth.
“Growth in non-resource intensive countries is expected to remain solid,
supported by domestic demand,” the report said.
The recovery was predicated on moderately rising commodity
prices and reforms to tackle macroeconomic imbalances.
However the down size risks are there such as
weaker-than-forecast commodity prices, worsening drought conditions, and cut
backs to US and official development assistance pose significant downside risks
to the regional outlook.
“A key domestic risk is the lack of implementation of re
forms that are needed to maintain durable macroeconomic stability and sustain
growth,” the report indicated.
The other two world fastest economic growing states which
are above Tanzania but below Ethiopia are Uzbekistan at 7.6 per cent and Nepal
7.5 per cent.
In Africa, however, most of the rebound will come from
Angola and Nigeria—the largest oil exporters. On other hand investment was
expected to recover only very gradually, reflecting still tight foreign
exchange liquidity conditions in oil exporters and low investor confidence in
South Africa.
Fiscal consolidation will slow the pace of recovery in
metals exporters. The two leading economies in SSA, South Africa and Nigeria
were projected to recover from 0.6 per cent in 2017 to 1.5 per cent in 2018-19
and from 1.2 per cent in 2017 to 2.5 per cent in 2018-19.
Article source: Daily News TZ