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.