News Feeds
23 Feb 2023
IMF Reaches Staff-Level Agreement on the First Review of the Extended Credit Facility and Conducts the 2023 Article IV Consultation with Tanzania
“Tanzania’s economic recovery from the impact of the pandemic is continuing despite headwinds from the global economic environment. While some sectors, including mining, tourism, and other services, showed signs of recovery in 2022, growth for the year is estimated to have reached 4.7 percent, reflecting the impact of global economic conditions, and the effects of a shortfall in rainfall on electricity production and agriculture. Despite price subsidies provided by the government on fuel and fertilizer, inflation peaked at 4.9 percent (year-on-year) in January (from 4.0 percent a year earlier), approaching the Bank of Tanzania’s (BoT) 5 percent upper band. With inflation rising, the BoT has stepped up its repo operations to mop up excess liquidity.
