7.4.09
BoT now pegs growth at between 5 and 6pc
By The Citizen Reporter
Tanzania's economy will grow by between 5 to 6.1 per cent this year, according to a top BoT official.
BoT director of policy Joseph Massawe said projections by the IMF were "ill advised".
Dr Massawe said Tanzania's economy had not been much affected by the global financial crisis, adding that the effects could be more pronounced in the coming months.
Some economists have also disputed the Bretton Woods institution's forecasts, saying they are too pessimistic and give the wrong impression of the country's economic outlook.
An IMF delegation said early last week the country's economy would grow by between four and five per cent this year due to the global downturn.
But commenting on the sidelines of the annual poverty alleviation meeting in Dar es Salaam recently, local economists said the projections had missed the point since the fundamentals of the country's economy remain sound.
An economic analyst, Prof Haidari Amani of the Economic and Social Research Foundation, said the global financier�s figures were questionable because the economic crisis had no direct impact on the country's economy.
What factors have the IMF used to make their projections because Tanzania's economy depends mostly on agriculture. The four per cent growth can only be possible if agricultural production falls,"he said.
Prof Amani said there were indications that most troubled Western economies, especially the US and in West Europe, would stabilise by end of year, 'making it impossible for Tanzania to get worse.'
Last December, the Government projected a 7.1 per cent economic growth for 2009, which Finance and Economic Affairs minister Mustafa Mkulo last week revised down to 6.5 per cent.
Other economic analysts have also disputed the IMF figures saying Tanzania's economic outlook seemed strong enough to survive the recession this year.
BoT said recently banks in the country were well capitalised and although interest rates have edged up marginally, there has not been any dramatic disruptions witnessed in the country.
And on the sidelines of the Research on Poverty Alleviation (Repoa) annual meeting in Dar es Salaam, local economists said the global crisis has had a minimal effect on the country.
By The Citizen Reporter
Tanzania's economy will grow by between 5 to 6.1 per cent this year, according to a top BoT official.
BoT director of policy Joseph Massawe said projections by the IMF were "ill advised".
Dr Massawe said Tanzania's economy had not been much affected by the global financial crisis, adding that the effects could be more pronounced in the coming months.
Some economists have also disputed the Bretton Woods institution's forecasts, saying they are too pessimistic and give the wrong impression of the country's economic outlook.
An IMF delegation said early last week the country's economy would grow by between four and five per cent this year due to the global downturn.
But commenting on the sidelines of the annual poverty alleviation meeting in Dar es Salaam recently, local economists said the projections had missed the point since the fundamentals of the country's economy remain sound.
An economic analyst, Prof Haidari Amani of the Economic and Social Research Foundation, said the global financier�s figures were questionable because the economic crisis had no direct impact on the country's economy.
What factors have the IMF used to make their projections because Tanzania's economy depends mostly on agriculture. The four per cent growth can only be possible if agricultural production falls,"he said.
Prof Amani said there were indications that most troubled Western economies, especially the US and in West Europe, would stabilise by end of year, 'making it impossible for Tanzania to get worse.'
Last December, the Government projected a 7.1 per cent economic growth for 2009, which Finance and Economic Affairs minister Mustafa Mkulo last week revised down to 6.5 per cent.
Other economic analysts have also disputed the IMF figures saying Tanzania's economic outlook seemed strong enough to survive the recession this year.
BoT said recently banks in the country were well capitalised and although interest rates have edged up marginally, there has not been any dramatic disruptions witnessed in the country.
And on the sidelines of the Research on Poverty Alleviation (Repoa) annual meeting in Dar es Salaam, local economists said the global crisis has had a minimal effect on the country.
SOURCE: The Citizen
WHO CARES?THEY COULD AS WELL FORECAST THE ECONOMY WILL GROW AT A RATE OF 50%....THESE "IMPRESSIVE" STATISTICS WOULD ONLY MAKE SENSE WHEN THEY TRANSLATE INTO A COMMON MAN ON THE STREET IS CERTAIN OF HAVING THEIR NEXT MEAL.
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