Fast Market Research

New Market Research Report: Tanzania Business Forecast Report Q4 2013

Fast Market Research recommends "Tanzania Business Forecast Report Q4 2013" from Business Monitor International, now available


Boston, MA -- (SBWIRE) -- 10/31/2013 -- Robust private consumption and investment spending, combined with weak import growth, will offset an expected subdued performance for exports and keep the Tanzanian economy expanding by more than 7.0% in 2013 and 2014.

Tanzania's current account deficit is set to expand over the coming years as demand for imports surges and gold prices fall. At this juncture, we believe that capital and financial account inflows will be sufficient to cover the forecasted shortfall. The balance of payments position could, however, come under pressure if the current account deficit ends up being wider and/or if capital and financial account inflows end up being lower than we currently anticipate.

View Full Report Details and Table of Contents

We believe the period of disinflation, which has seen price growth fall from 19.8% in December 2011 to 7.5% in July 2013, is coming to an end, as demand-pull pressure and a looser monetary policy will prevent headline inflation from falling much lower than 6.5%. That said, we do not think inflation will head higher rapidly after it has bottomed thanks to prudent monetary policy, a stable shilling and ample food supplies.

Friction between the governments of Tanzania and Rwanda, which has been rising since May, will likely dissipate over the medium term as the incentives for cooperation between the two states outweigh those for hostility. Even so, the volatile situation in the eastern Democratic Republic of the Congo could see tensions between Kigali and Dodoma flare, which would in turn pose a risk to economic and political integration in the East African Community.

Major Forecast Changes

No major forecast changes

Key Risks To Outlook

The major risk to our economic outlook comes from the weather. Poor rains would not only exacerbate tight food supplies (food price inflation was the major driver of rapidly rising headline inflation in 2011) but would also once again hamper hydroelectricity production, raising costs for businesses and, by extension, consumers.

The country's infrastructure deficit is another concern; a failure to make significant progress would very likely hold the economy back from reaching its significant potential.

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at or call us at 1.800.844.8156.

Browse all Country Reports research reports at Fast Market Research

You may also be interested in these related reports:

- Tanzania Business Forecast Report Q4 2013
- Estonia Business Forecast Report Q4 2013
- Albania Business Forecast Report Q4 2013
- Trinidad & Tobago Business Forecast Report Q4 2013
- United States Business Forecast Report Q4 2013
- Bulgaria Business Forecast Report Q4 2013
- Slovakia Business Forecast Report Q4 2013
- Chile Business Forecast Report Q4 2013
- Philippines Business Forecast Report Q4 2013
- Latvia Business Forecast Report Q4 2013