World Bank contradicts Tanzania’s economic growth estimates

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The World Bank says Tanzania’s economy grew by 5.2 percent in 2018, contradicting the country’s finance minister who told parliament last year that growth stood at 7 percent.

In a report released on Thursday, the World Bank also forecast growth for 2019 at 5.4 percent, also below the government’s estimate of 7.1 percent. The report says growth has been affected by declines in investment, exports and private lending in 2018.

Second report contradicts government figures

Thursday’s figures from the World Bank mark the second major report to contradict economic figures offered by Tanzania’s government. An unpublished report from the International Monetary Fund (IMF) was leaked in April, questioning the economic policies of President John Magufuli while putting medium-term growth at around 4-5 percent – significantly below government estimates.

Now, the World Bank also says the government is failing to meet its spending targets in development projects, which is partly responsible for subdued growth. Its report says the economy could achieve 6% growth by 2021 “with a modest improvement of the business climate and a pick-up in [foreign direct investment] and other private investment.”

Featured image: By Shiny Things – Flickr, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=2390362

About Aaron Brooks

Aaron Brooks is a UK journalist who wants to cut out the international agendas in news. Spending his early years in both England and Northern Ireland he saw the difference between reality and media coverage at an early age. After graduating from the University of Chester with a BA in journalism, his travels revealed just how large the gap between news and the real world can be. As Editor-in-Chief at East Africa Monitor, it’s his job to provide a balanced view of what’s going on in the region for English-speaking audiences.