World Bank cuts Tanzania's 2017 growth forecast to 6.6%

The World Bank has cut Tanzania’s economic growth forecast for this year to 6.6 percent from the government’s 7.1 percent estimate, citing policy uncertainty and sluggish private sector
activity.

The World Bank said in May it expects Tanzania’s economy to grow at around 7 percent over the next two years.
The East African nation has pledged to boost public investment in infrastructure, including a standard gauge railway, new roads and expanding its ports.
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But investors have been unnerved by policies from the government of President John Magufuli, who is nicknamed “The Bulldozer” for his governing style.

“The Magufuli administration has prioritised efforts to improve public administration, to clamp down
on corruption and to strengthen the tax
administration. While these efforts are well intended, the transition has caused uncertainty within the private sector,” the World Bank said in its latest economic update on Tanzania released on Monday.

“There appears to have been an overall
deterioration in business sentiment due to the perceived risks resulting from the unpredictability of policy actions related to the government’s intensified efforts to collect revenue and to its anti-corruption drive.”

Please Livale give us a credible source so as we get more insight.

Hamna political problems, no drought whatsoever, no credit warning and yet were still able to shoot yourselves in the foot.

A drop from 7.1-6.6% is just as severe as Kenya's 5.5-4.9%. Yet the latter had political turmoil and impasse, a drought, a worsened credit scenario and its port business was diverted to Tz.

This goes to show that sound policies really are important
World Bank cuts Tanzania's 2017 growth forecast to 6.6% - CNBC Africa

hehehe, ngoja nawasubiri na mipovuuu.

Livale said:

Hamna political problems, no drought whatsoever, no credit warning and yet were still able to shoot yourselves in the foot.

A drop from 7.1-6.6% is just as severe as Kenya's 5.5-4.9%. Yet the latter had political turmoil and impasse, a drought, a worsened credit scenario and its port business was diverted to Tz.

This goes to show that sound policies really are important
World Bank cuts Tanzania's 2017 growth forecast to 6.6% - CNBC Africa

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3rd man said:

hehehe, ngoja nawasubiri na mipovuuu.

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Kama kawaida. Mipovu ya sewage

Just thinking out loud, what if the had the challenges Kenya faced this year, si wangekua kwa 3%

Mtamuelewa tuu Zitto Kabwe kwenye hili...

IROKOS said:

Mtamuelewa tuu Zitto Kabwe kwenye hili...

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Sijamfahamu vyema, najua tu kuna wakati alifurushwa toka CHADEMA. Aliongelea kuhusu nchi ya vi-wonder?

Livale said:

Hamna political problems, no drought whatsoever, no credit warning and yet were still able to shoot yourselves in the foot.

A drop from 7.1-6.6% is just as severe as Kenya's 5.5-4.9%. Yet the latter had political turmoil and impasse, a drought, a worsened credit scenario and its port business was diverted to Tz.

This goes to show that sound policies really are important
World Bank cuts Tanzania's 2017 growth forecast to 6.6% - CNBC Africa

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Ha ha haaaa, at last you got something to say.
But please find out when this report was released by the World Bank.

Haha, counter attach it won't work. Kenya mlikuwa 5.8% 2016. Mnamaliza 2017 na 4.9%, that is almost 1% drop. Compare that na ¼% drop ya Tanzania. Dont worry 3% inakuja with no food na sluggish industrial output, hamko mbali. Wenzenu tumepata bumper harvest tutawaleteni chakula.

Hii habari inanikumbusha ule msemo wa when Kenya sneezes, the whole EAC catches a cold


Within the EAC, the Kenyan economy is the anchor.
The overall performance of the region will to a great extent depend on what happens in Kenya. Kenya’s economy is the largest in the region and is much more dynamic than those of other member countries. The country’s economy is much better linked to the other economies in terms of investment flows and trade. Thanks to its more advanced human capital base, its more diversified economy, and its role as a leader in the information communication revolution in the region, Kenya’s economy is expected to remain strong, creating salutary benefits to the other member countries.
Africa’s Powerhouse

The world bank forgot to add another factor which the major rating agencies reffered it as a threat to Kenya’s economy. That is the Kenyan Airways. The airline:
1. Has a serious and rescheduled debt of $2 billion from different lenders.
2. Has posted the country’s biggest ever annual corporate loss of 26 billion shillings ($251 million).
3. This pushed pushed the company into negative equity of 45 billion shillings.
Other debts from other investments such as SGR are not included.

eliakeem said:

The world bank forgot to add another factor which the major rating agencies reffered it as a threat to Kenya’s economy. That is the Kenyan Airways. The airline:
1. Has a serious and rescheduled debt of $2 billion from different lenders.
2. Has posted the country’s biggest ever annual corporate loss of 26 billion shillings ($251 million).
3. This pushed pushed the company into negative equity of 45 billion shillings.
Other debts from other investments such as SGR are not included.

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hehehe,povuuuuu

eliakeem said:

Ha ha haaaa, at last you got something to say.
But please find out when this report was released by the World Bank.

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At last you've got an ear to what I say, hmm. The update was released mid last month, and it's the last such release by the WB on growth prospects of Tanzania.

They indeed haven't bothered to make another update because that % growth still holds water, unless you just got wind of another update you'd like to enlighten us with

Mwanzi1 said:

Haha, counter attach it won't work. Kenya mlikuwa 5.8% 2016. Mnamaliza 2017 na 4.9%, that is almost 1% drop. Compare that na ¼% drop ya Tanzania. Dont worry 3% inakuja with no food na sluggish industrial output, hamko mbali. Wenzenu tumepata bumper harvest tutawaleteni chakula.

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7.2- 6.6 gives a ¼% drop in growth? Huh! do the maths, this time more carefully. more like ¾% drop in growth despite all prospects being +ve.

So ask yourselves what happened, did the bulldozer bulldoze the economy to the gutters?

Livale said:

7.2- 6.6 gives a ¼% drop in growth? Huh! do the maths, this time more carefully. more like ¾% drop in growth despite all prospects being +ve.

So ask yourselves what happened, did the bulldozer bulldoze the economy to the gutters?

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¾% from where? Mzee, are we all looking on the same data? Magufuli anawapa shida sana, magufuli amekuwa mwiba mchungu to all those foreign media including Kenyan media. This year alone how many stoke shares za wazungu zimevurugika kwa zambi zao wanazofanya Tanzania? In case of Tanzania growth, is more of commodity price drop than Magufuli (kitu kibacho kimetokea kwenye nchi nyingi including China). But we're still commanding strong growth compare with the rest of EAC.

eliakeem said:

The world bank forgot to add another factor which the major rating agencies reffered it as a threat to Kenya’s economy. That is the Kenyan Airways. The airline:
1. Has a serious and rescheduled debt of $2 billion from different lenders.
2. Has posted the country’s biggest ever annual corporate loss of 26 billion shillings ($251 million).
3. This pushed pushed the company into negative equity of 45 billion shillings.
Other debts from other investments such as SGR are not included.

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And you forgot to mention that the same company

1. Just gained sh 65bn in 3 trading days on the NSE. The same lenders in effect gained sh 5bn from the appreciation in its market cap

2. Posted the biggest gain of any company in such a short time, a gain of 3 times the value of its (record) loss

3. The gains on the bourse to sh12.4/= per share with the increased shares issued to 5.82bn gives it a MKT cap of 72.5bn on the back drop of a mortgage of 22bn. This this means a +ve equity of sh50.5bn

Mwanzi1 said:

¾% from where? Mzee, are we all looking on the same data? Magufuli anawapa shida sana, magufuli amekuwa mwiba mchungu to all those foreign media including Kenyan media. This year alone how many stoke shares za wazungu zimevurugika kwa zambi zao wanazofanya Tanzania? In case of Tanzania growth, is more of commodity price drop than Magufuli (kitu kibacho kimetokea kwenye nchi nyingi including China). But we're still commanding strong growth compare with the rest of EAC.

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No we are not it seems. The data you are looking at, I have no idea.

But let's get on the same page. Tz grew at 7.2% in 2016, the latest WB updates put your 2017 growth at 6.6%.

With the above data, if we subtract
7.2 - 6.6 = 0.7%
That is close to ¾% drop in growth figures. We clear on this?

Kisha do not blame on your subdued drop in growth on commodity prices. Commodities whose prices have plummeted are oil, sugar and iron ore. All of which Tanzania doesn't export. Now looking at the price trends in 2017 for commodities Tanzania exports. Gold, silver, copper and Manganese ores, all of which account for 39% of the value of you exports all gained strongly in 2017.

So your poor performance this year could have been far worse had these commodity prices remained stagnant or dropped

Livale said:

At last you've got an ear to what I say, hmm. The update was released mid last month, and it's the last such release by the WB on growth prospects of Tanzania.

They indeed haven't bothered to make another update because that % growth still holds water, unless you just got wind of another update you'd like to enlighten us with

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the original version was released in the end of October and cnbc aired it 7th of November. a month ago.
wondered why you brought it today.

Livale said:

No we are not it seems. The data you are looking at, I have no idea.

But let's get on the same page. Tz grew at 7.2% in 2016, the latest WB updates put your 2017 growth at 6.6%.

With the above data, if we subtract
7.2 - 6.6 = 0.7%
That is close to ¾% drop in growth figures. We clear on this?

Kisha do not blame on your subdued drop in growth on commodity prices. Commodities whose prices have plummeted are oil, sugar and iron ore. All of which Tanzania doesn't export. Now looking at the price trends in 2017 for commodities Tanzania exports. Gold, silver, copper and Manganese ores, all of which account for 39% of the value of you exports all gained strongly in 2017.

So your poor performance this year could have been far worse had these commodity prices remained stagnant or dropped

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Ati 7.2 - 6.6 you get what? Yeah different strokes for different fox. I didn't see you mentioning coffee, cotton or sisal. How come I don't see you mentioning low cash injection on exploration of oil n gas due to dipping world market? Was Tanzania not gaining FDI from gas industry? How about EU scaling back investment in Africa economies because of Euro crisis, ....are all those Magufuli's fault?

Mwanzi1 said:

Ati 7.2 - 6.6 you get what? Yeah different strokes for different fox. I didn't see you mentioning coffee, cotton or sisal. How come I don't see you mentioning low cash injection on exploration of oil n gas due to dipping world market? Was Tanzania not gaining FDI from gas industry? How about EU scaling back investment in Africa economies because of Euro crisis, ....are all those Magufuli's fault?

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Dude, are you this daft? Simple Arthimetics has never seemed so complex an troublesome

if you can't comprehend the fact that a drop from 7.2% growth in 2016 to 6.6% this year is more like ¾% drop in growth and not your ¼% drop, then I've nothing meaningful to say to you. Some dogs weren't just meant to be awoken from their stupor.