Tanzania economic fundamentals strong - IMF

[Invisible]

WASHINGTON, Dec 22 (Reuters)

Tanzania's strong economic fundamentals, including low public debt and ample foreign currency reserves, will help the East African country cope with the current global downturn and fall in world commodity prices, the International Monetary Fund said on Monday.

Still, the IMF urged the authorities to prepare contingency plans in case the global downturn worsens.

"The fiscal stance for 2008-09 provides an appropriate modest stimulus, while retaining the target of zero net domestic financing, which is supportive of monetary policy," the IMF said in a review of Tanzania's economy.

"The authorities will need to exercise expenditure restraint in the event of a revenue shortfall," it added.

Earlier this year, the government had targeted average inflation at below 4.5 percent by the end of the current year.
The IMF said higher infrastructure investment is needed to support growth, but care should be taken to achieve value for money and avoid increasing public debt, IMF Deputy Managing Director Murilo Portugal said in a statement on Monday.

The sharp drop in global commodity prices will help lower inflation, he said, but the fund urged authorities to strengthen monetary control to return inflation to the authorities' medium-term objective.

Tanzania's annual inflation was at 12.3 percent in November from 11.8 percent in October due to higher food prices, the National Bureau of Statistics reported on Dec. 17.

The country's annual inflation rate hit double digits in September for the first time in September, an increase felt in most developing countries hit by higher global food and fuel prices.


"In this regard, the recent agreement between the Ministry of Finance and Economic Affairs and the Bank of Tanzania on their respective roles and responsibilities will help improve liquidity forecasting and management," Portugal added.

(Reporting by Lesley Wroughton; editing by Gary Crosse) Keywords: IMF TANZANIA/ (lesley.wroughton@thomsonreuters.com; +1-202-898-8317; Reuters Messaging: lesley.wroughton.reuters.com@reuters.net)

 

[Nyambala]

My friends!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[Tikerra]

I do not trust any information from IMF a bit, they are the ones who have finished us off.The information is most probably designed to give us hope.It will not be surprising if it is exactly the opposite!

 

[Mpita Njia]

WASHINGTON, Dec 22 (Reuters) (Reporting by Lesley Wroughton; editing by Gary Crosse) Keywords: IMF TANZANIA/ (lesley.wroughton@thomsonreuters.com; +1-202-898-8317; Reuters Messaging: lesley.wroughton.reuters.com@reuters.net)

Inflation, kwa mara ya kwanza katika kipindi kirefu, imefika double digit katika kiopindi hiki. na mbaya zaidi inazidi kukua, hapo bado madhara ya Global recession hayajaanza kuuma. Hii ripoti inamaanisha nini???? Kutupaka mafuta kwa mgongo wa chupa?

 

[Invisible]

Inflation, kwa mara ya kwanza katika kipindi kirefu, imefika double digit katika kiopindi hiki. na mbaya zaidi inazidi kukua, hapo bado madhara ya Global recession hayajaanza kuuma. Hii ripoti inamaanisha nini???? Kutupaka mafuta kwa mgongo wa chupa?

MN,

When I read this article it was like "Oh My God, what the f***!? These guys aren't serious at all. These reports are being cooked? Who's faking like this?"

But later on I said to myself: "Present this article to your fellows and probably you're wrong and you've no grounds to attack the report."

Frankly, I lost hope with this IMF. Let's see what's WB's stand

 

[Companero]

Let's see what's WB's stand

Has it ever had a different stand from its fellow Bretton Woods institution?

 

[Mpita Njia]

MN,

When I read this article it was like "Oh My God, what the f***!? These guys aren't serious at all. These reports are being cooked? Who's faking like this?"

But later on I said to myself: "Present this article to your fellows and probably you're wrong and you've no grounds to attack the report."

Frankly, I lost hope with this IMF. Let's see what's WB's stand

We need to ne very wary of these people. On this I am sure wanaandaa n how they can burn us alive using global recession as an excuse, wanaanza kwa kutusifia kwanza, tupumbazike kabla hawajaingiza mirija yao hapo baadaye

 

[Bulesi]

Atakachosema IMF mwenzie wa World Bank hawezi kuwa na mawazo tofauti because they share information; na sisi tusiwe mabwege tukakubali kila kitu!! Ukweli ni kwamba lazima tuchunge rasilimali zetu vizuri tusikubali wakinaSinclair na vikaragosi vyao watuibie. Uchumi wetu unategemea exports za Commodities ambazo bei zake zinashuka kwa kasi na watalii watapungua kwani huko kwao wengi wamepunguzwa kazi; hence our foreign reserves will be negatively affected . Itatubidi tutumie foreign reserves zetu kwa uangalifu na hii maana yake muungwana apunguze safari za nje ambazo zinatumia sana forex; matumizi ya magari ya serikali hasa [ Land cruisers ] lazima yaangaliwe kwa makini ili kupunguza gharama etc. wakati huu mgumu ni vizuri pia Jakaya akatumia ushauri wa wataalam waliona uzoefu wa kufanya kazi na IMf na WB kama washauri badala ya kutegemea ushauri wa Gavana wa Benki kuu peke yake. Kuna watu kam prof. Delphine Rwegasira aliyewahi kumfindisha Jakaya UDSM nadhani anaweza kuwa msaada mkubwa sana kwake; hao wakina Mwinyimvua hawana uzoefu wa kutosha na si vizuri kuyafanyia experiment maisha ya watu.

 

[MgonjwaUkimwi]

If no other institute report otherwise, I will have to 100% agree to what IMF and WB say.