World Bank Africa
Tanzania stands out as a model of
sound economic performance with a growth rate of over six percent in 2011 and 2012.
DAR ES SALAM, November 1, 2012 The Tanzania Economic Update is a biannual
series aimed at fostering constructive
dialogue between stakeholders and
policymakers about the state of
Tanzanias economy and stimulating
debate on the countrys essential economic issues.
This issue of the Update focuses on how
to achieve structural transformation of
the rural economy so that rural
households, and not just those living in
urban areas, can benefit from the
countrys remarkable growth performance.
The Update points to three forces that have the potential to produce
transformational impact in Tanzania:
agricultural commercialization; diversification toward high value
products and off-farm activities; and migration toward urban centers.
The Updates finds that: In economic terms, Tanzania was a
rock of stability in 2011/12, recording
solid growth and strengthened fiscal discipline despite increases in the rate of inflation.
Tanzanias economic prospects look
positive over the period for 2012-14 when its GDP is forecast to grow at a rate of 6.5 - 7.0 percent. However, the
threat of exogenous risks cannot be
ignored.
In 2012/13, fiscal policy will remain
the main instrument to promote
economic growth, through the
combination of higher spending and an increasing shift towards expenditure
on infrastructure.
To ensure fiscal and debt sustainability
and the optimal use of public resources,
close monitoring of public accounts is required, including of public agencies and enterprises operating in the
energy sector.
Over the next few years private
sectors expansion is expected to
remain biased toward capital-
intensive sectors with the exception of
the construction sector which will
benefit from the Governments infrastructure program and from
increasing FDI in the extractive
industries.
Tanzanias macroeconomic success has
not been felt by the majority of the rural population that is still living in
extreme poverty.
Successful rural economies such as Malaysia and Vietnam, have
implemented systems to connect their
farmers to markets. To facilitate
growth and equity, they have also encouraged the cultivation of high- value, non-traditional crops and developed off-farm activities. They have also managed migration flows
toward urban centers.
for more information visit www.worldbank.org/en/news/2012/11/01/tanzania-economic-update-from-growth-to-shared-prosperity
Tanzania stands out as a model of
sound economic performance with a growth rate of over six percent in 2011 and 2012.
DAR ES SALAM, November 1, 2012 The Tanzania Economic Update is a biannual
series aimed at fostering constructive
dialogue between stakeholders and
policymakers about the state of
Tanzanias economy and stimulating
debate on the countrys essential economic issues.
This issue of the Update focuses on how
to achieve structural transformation of
the rural economy so that rural
households, and not just those living in
urban areas, can benefit from the
countrys remarkable growth performance.
The Update points to three forces that have the potential to produce
transformational impact in Tanzania:
agricultural commercialization; diversification toward high value
products and off-farm activities; and migration toward urban centers.
The Updates finds that: In economic terms, Tanzania was a
rock of stability in 2011/12, recording
solid growth and strengthened fiscal discipline despite increases in the rate of inflation.
Tanzanias economic prospects look
positive over the period for 2012-14 when its GDP is forecast to grow at a rate of 6.5 - 7.0 percent. However, the
threat of exogenous risks cannot be
ignored.
In 2012/13, fiscal policy will remain
the main instrument to promote
economic growth, through the
combination of higher spending and an increasing shift towards expenditure
on infrastructure.
To ensure fiscal and debt sustainability
and the optimal use of public resources,
close monitoring of public accounts is required, including of public agencies and enterprises operating in the
energy sector.
Over the next few years private
sectors expansion is expected to
remain biased toward capital-
intensive sectors with the exception of
the construction sector which will
benefit from the Governments infrastructure program and from
increasing FDI in the extractive
industries.
Tanzanias macroeconomic success has
not been felt by the majority of the rural population that is still living in
extreme poverty.
Successful rural economies such as Malaysia and Vietnam, have
implemented systems to connect their
farmers to markets. To facilitate
growth and equity, they have also encouraged the cultivation of high- value, non-traditional crops and developed off-farm activities. They have also managed migration flows
toward urban centers.
for more information visit www.worldbank.org/en/news/2012/11/01/tanzania-economic-update-from-growth-to-shared-prosperity
