Tanzania economy is expected to grow above the Sub-Sahara Africa average next year, as the World Bank says the regional exits recession this year. The World Bank said on Wednesday that the Sub-Saharan is set to emerge from the last year recession sparked by the COVID-19 pandemic with growth expected to expand by 3,3 percent in 2021.
According to the Pulse analysis, the World Bank's twice-yearly economic update for the region, further indicated that the region is expected to grow to 5,1 percent in 2022 and 5,4 percent in 2023. This rebound is currently fueled by elevated commodity prices, a relaxation of stringent pandemic measures, and recovery in global trade, but remains vulnerable given the low rates of vaccination on the continent, protracted economic damage, and a slow pace of recovery fair and broad access to effective and safe COVID-19 vaccines is key to saving lives and strengthening Africa's economic recovery.
"Faster vaccine deployment would accelerate the region's growth to 5,1 percent in 2022 and 5,4 percent in 2023 - as more containment measures are lifted, boosting consumption and investment," World Bank Chief Economist for Africa Albert Zeufack said.
According to analysis in the Pulse, the growth for 2022 and 2023 will also remain just below 4,0 percent, continuing to lag the recovery in advanced economies and emerging markets, and reflecting subdued investment in Sub-Sahara Africa. The Tanzania economy, according to the Africa Development Bank (AfDB) outlook, is forecasted to grow 4,1 percent this year and 5,8 percent in 2022. "The (Tanzania) economic outlook is positive... Due to improved performance of the tourism sector and the reopening of trade corridors. The major downside risks to the outlook include business regulatory bottlenecks that constrain private sector activity and uncertainties regarding the pandemic," AfDB Tanzania Economic Outlook 2021 said.
However, Tanzania in its letter of intent to IMF last month cut down this year growth forecast to 4,0 from 5,6 percent. Moving the 2021/2022 budget the Minister for Finance and Planning, Dr. Mwigulu Nchemba told the Parliament that the country's growth projection was pegged at 6,3 percent in 2022/2023. Nevertheless, World Bank Pulse analysis showed that current speeds of economic recovery in the region are varied, with the three largest economies, Angola, Nigeria, and South Africa, expected to grow by 0,4 percent, 2,4 percent, 4,6 percent respectively in this year.
"A positive trend, according to the report authors, is that African countries have seized the opportunity of the crisis to foster structural and macro-economic 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, fuel subsidy reform in Nigeria, and the opening of the telecommunications sector to the private sector in Ethiopia.