Tanzania economic figures contradict World Bank’s

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Tanzania economic figures contradict World Bank’s

7:57 CAT | 19 Jul 2019

President Magufuli has undertaken an ambitious programme of industrialisation since 2015

Tanzania is considering reviewing its conclusions about economic growth, after the World Bank calculated a much lower figure for 2018.

The government claims gross domestic product grew 7% last year, but the Washington based institution calculates growth of about 5% and the World Bank used the same data as Tanzania’s Statistics Agency.

The discrepancy will worry investors.

When foreign investors lend to countries their decision is influenced by the health of a nation’s economy.

This year an unpublished report by the International Monetary Fund raised questions about President John Magufuli’s “unpredictable and interventionist” policies.

And the IMF forecasted medium-term growth between 4% – 5%, also well below the government’s figure.

President Magufuli has undertaken an ambitious programme of industrialisation since 2015, investing billions of dollars in infrastructure, including a new rail line, reviving the national airline and a hydropower plant.

However, government interventions in mining and agriculture have led to a big drop in foreign investment.

For now, Tanzania will stick with an economic growth figure of 7%, although officials will meet World Bank representatives next month to review the calculations.

Source: BBC