THE International Monetary Fund (IMF) has said Tanzania’s economy is projected to rebound to about 6.5 per cent over medium-term, assuming successful implementation of the authorities’ reform agenda.The IMF latest report stated that the economic recovery is expected to strengthen and the medium-term outlook is positive contingent on the implementation of the authorities’ reform agenda.Inflation is expected to remain below the BoT’s 5 per cent target and enhanced revenue mobilisation efforts are expected to improve the fiscal outlook.The headline inflation remained within Bank of Tanzania’s target of 3.1 per cent (year on year) in April, although core inflation ticked up to 3.9 per cent (year on year).The current account deficit is projected to moderate over the medium-term as the global shocks subside and the authorities’ reforms start to pay off.According to the Bank of Tanzania’s latest monthly economic report as a result, the current account deficit narrowed substantially to 2,456.6 million US dollars from 5,306.6 US dollars million recorded in the year ending April 2023.The IMF report said risks to the outlook are tilted to the downside.The intensification of regional conflicts, increased commodity price volatility, an abrupt global slowdown or recession, natural disasters related to climate change, failure to address pressures in the foreign exchange market, and a poorly executed scale up of public investment projects could weigh negatively on the near-term outlook. (ICE ADDIS ABEBA)

Fonte notizia: Tanzania Daily news