Boston, MA -- (SBWIRE) -- 01/07/2014 -- Investment into Tanzania's nascent offshore gas sector will more than offset poor export performance in the country in 2014 and 2015. This will keep the real GDP growth rate at around 7.3% for the next several years.
We believe that Tanzania's budget deficit will widen as a proportion of GDP in the next several years, testing the country's commitment to IMF programmes. With tax revenues falling, pressure will build for the country to reform its tax exemptions for companies.
BMI believes that monetary policy will be loosened in Tanzania. Inflationary pressures continue to diminish, and the latest headline growth reading coming in below target provides impetus to spur growth. With a stable shilling and record foreign reserves, the Bank of Tanzania has ample tools to support this.
Voices within the Tanzanian parliament have called for the country to leave the East African Community (EAC) regional bloc, amid tensions with Rwanda and concerns that the country is being sidelined. While we do not envisage the departure of Tanzania from the organisation, we caution that such disputes could serve to hinder growth in the region.
View Full Report Details and Table of Contents
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 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 http://www.fastmr.com 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:
- Chile Business Forecast Report Q1 2014
- Spain Business Forecast Report Q1 2014
- Hungary Business Forecast Report Q1 2014
- Russia Business Forecast Report Q1 2014
- Mexico Business Forecast Report Q1 2014
- Brazil Business Forecast Report Q1 2014
- Lithuania Business Forecast Report Q1 2014
- Australia Business Forecast Report Q1 2014
- Vietnam Business Forecast Report Q1 2014
- Kuwait Business Forecast Report Q1 2014