IMF Warns Tanzania of Growth Risks

The International Monetary Fund has warned Tanzania that the country’s economic policies threaten its forecast for growth in fiscal year 2016/17 (July-June) of around 7%, Yahoo reported. President John Magufuli promised when he was elected last year to reform an economy hobbled by red tape and corruption and begin a program to develop public infrastructure. But the IMF said progress has been slow and lack of public spending is curtailing liquidity. “There are risks that could adversely affect economic growth going forward, arising from the currently tight stance of macroeconomic policies, the slow pace of credit growth that may become protracted, slow implementation of public investment, and private sector uncertainty about the government’s new economic strategies,” the IMF said late on Monday in its latest review. Tanzania projects growth of 7.2% for 2016, up from 7% in 2015, led by mining, telecoms, construction and financial services. “Monetary policy should be eased to address the tight liquidity situation and support credit to the private sector,” said the IMF.