Geza Ulole
JF-Expert Member
- Oct 31, 2009
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Tanzania sees GDP growth at 7.2 pct this year -finance minister
DAR ES SALAAM, June 4 (Reuters) - Tanzania's economy is expected to grow by 7.2 percent in 2018, up from around 7.1 percent last year, and the fiscal deficit will increase on the back of higher infrastructure spending, the finance minister said on Monday.
Economic output in the East African nation is expected to be underpinned by vibrant activity in mining, transport and communications sectors.
In a presentation to parliament, finance and planning minister Philip Mpango also said the inflation rate in 2018 would be "tamed at single digit levels".
The fiscal deficit will reach 3.2 percent of gross domestic product in the 2018/19 fiscal year (July-June), up from around 2.1 percent in 2017/18, he said.
Tanzania's inflation stood at 3.8 percent year-on-year in April, slightly down from 3.9 percent a month earlier.
President John Magufuli's government has pledged to boost public investment in infrastructure projects, including a standard gauge railway, new roads, power plants and expansion of port facilities.
The overall budget is expected to rise to 32.5 trillion shillings ($14.29 billion) in the 2018/19 fiscal year, a 2.4 percent increase from the previous year, Mpango said.
Magufuli said on Friday Tanzania plans to invest around $6 billion over the next five years in its agriculture sector, a mainstay of the economy.
The private sector is expected to contribute 60 percent of the funds for the Agricultural Sector Development Programme Phase II, with the balance coming from the government and development partners.
($1 = 2,275.0000 Tanzanian shillings)
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Tanzania sees GDP growth at 7.2 pct this year -finance minister