Macroeconomic Forecast Tanzania

BMI View: Underpinned by high gold prices, strong demand for manufactured goods from the country's neighbours, and signs that the domestic demand is similarly robust, the outlook for the Tanzanian economy continues to look bright. However, rising inflation and a weakening currency have raised questions about whether the economic momentum can and will be maintained over the short-to-medium term. In particular, frequent and lengthy power outages will reduce efficiency and constrain economic activity. For the time being, we retain our 2011 and 2012 real GDP growth forecasts at 6.2% and 6.5% but will be keeping a close eye on developments.

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