IMF cuts Tanzania's 2019 economic growth forecast to 4 per cent

Tanzania’s economy will expand at 4 per cent this year. [Photo: Courtesy]

The International Monetary Fund lowered its forecast for Tanzania’s economic growth this year and in 2020 to around 4 per cent from a previous forecast.

In its World Economic Outlook, released on Tuesday, the Fund also predicted the East African nation’s consumer price inflation will reach 3.5 per cent this year and edge up to 4.5 per cent in 2020.

Tanzania’s economy will expand at 4 per cent this year then accelerate slightly to 4.2 per cent next year, from an estimated 6.6 percent in 2018, the Fund said in its forecasts.

In January last year, the IMF said it expected Tanzania’s economy to grow at 6–7 per cent over the medium term if the country hiked capital spending and improved its business environment.

Tanzania relies heavily on mining, tourism and telecommunications for state revenues and foreign exchange earnings.

The government forecasts the economy will grow 7.3 percent in 2019 after an estimated 7.2 percent expansion last year, helped by public infrastructure investments.