Koborer
JF-Expert Member
- Apr 6, 2012
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Natural gas from offshore fields is expected to start generating
The IMF expects the east African nation's economy to expand by 7 percent this year as well as in the medium term, with inflation, which stands at 6 percent, falling towards the government's target of 5 percent.
The macroeconomic outlook remains favourable
Tanzania is expected to reduce its current account deficit gradually over the medium term, from the present 14 percent of gross domestic product, one of the largest in the region, the IMF said late on Wednesday.
"This positive outlook is predicated in part on the authorities' intention to undertake further reforms to improve the investment climate and diversify the economic base," the fund said.
The IMF said the country needed to create solid plans for the management of resources from natural wealth, such as natural gas from offshore fields, which is expected to start generating revenue for the government in the early 2020s.
"The macroeconomic outlook remains favourable, based on the projected completion of a natural gas pipeline and adequate natural gas-fired power plants in 2014/15," the fund said.
Source: theafricareport