The economy of TANZANIA is expected to grow above the average for sub-Saharan Africa next year, as the World Bank says, regional recession is coming out this year.
The World Bank said on Wednesday that the sub-Saharan region will emerge from last year’s recession triggered by the Covid-19 pandemic, with growth expected to rise 3.3% in 2021.
According to Pulse analysis, the World Bank’s semi-annual economic update for the region further indicates that the region is expected to reach 5.1% in 2022 and 5.4% in 2023.
This rebound is currently fueled by high commodity prices, a relaxation of stringent pandemic measures and the resumption of global trade, but remains vulnerable given low vaccination rates on the continent, prolonged economic damage and the slow recovery “Fair and broad Access to effective and safe vaccines against Covid-19 is essential to save lives and strengthen Africa’s economic recovery.”
Faster vaccine deployment would accelerate the region’s growth to 5.1% in 2022 and 5.4% in 2023, as more containment measures are lifted, boosting consumption and investment, ”said Albert Zeufack , World Bank Chief Economist for Africa.
According to Pulse analysis, growth for 2022 and 2023 will also remain just below 4.0%, continuing to lag behind the recovery in advanced economies and emerging markets, and reflecting weak investment in Sub-Saharan Africa.
According to the outlook of the African Development Bank (AfDB), Tanzania’s economy is expected to grow 4.1% this year and 5.8% in 2022.
“The economic outlook (of Tanzania) is positive … due to the improved performance of the tourism sector and the reopening of trade corridors.
“The main downside risks to the outlook include business regulatory bottlenecks limiting private sector activity and uncertainties about the pandemic,” AfDB Tanzania Economic Outlook 2021 said.
However, Tanzania, in its letter of intent to the IMF last month, cut its growth forecast for this year to 4.0 from 5.6 percent.
Moving the 2021/22 budget, the Minister of Finance and Planning, Dr Mwigulu Nchemba, told parliament that the country’s growth projection was set at 6.3% in 2022/23.
Nonetheless, the World Bank’s Pulse analysis showed that the current rates of economic recovery in the region are variable, with the three largest economies, Angola, Nigeria and South Africa, expected to grow by 0, 4%, 2.4% and 4.6% in this year.
“A positive trend”, according to the report’s authors, “is that African countries have seized the opportunity of the crisis to promote structural and macroeconomic reforms.”
The Bretton Woods institution said several countries have embarked on difficult but necessary structural reforms, such as the unification of exchange rates in Sudan, the reform of fuel subsidies in Nigeria and the opening of the telecommunications sector. to the private sector in Ethiopia.