Tanzanian growth at 7%

Tanzania's economy is expected to grow by 7% in 2013-14, but vulnerabilities remain, the IMF said.

Real gross domestic product grew by 6.9% in 2012 compared to 6.4% in 2011, the IMF said.

"Growth was driven by transport and communications, financial services, manufacturing and trade; it was supported by improved power supply," the fund said.

Estimates of Tanzania's gas reserves have shot up to 28.7 trillion cubic feet from 10 trillion cubic feet following new discoveries by Statoil ASA(>> Statoil ASA), Ophir Energy PLC (>> Ophir Energy Plc) and BG Group PLC (BG.LN), according to Tanzania's energy and minerals ministry.

Tanzania's risk of debt distress remains low, but the debt-to-GDP ratio has risen steadily over the past few years and fiscal policy will attempt to stabilize the debt ratio at about 45% in 2014-15, the IMF said.

In the absence of external shocks, the fund envisages a further decline in inflation to 7% by December and to the government's medium-term objective of 5% a year later, the fund said.

http://www.4-traders.com/OPHIR-ENERGY-PLC-8360318/news/IMF-Sees-Tanzania-Growth-at-7-for-2013-2014-But-Vulnerabilities-Remain-17036189/

Fed Seen Reducing Asset Buying by Smaller Amount

Economists cut their estimates for how much the Federal Reserve will reduce the amount of its monthly asset purchases, a Bloomberg survey shows.

Two of the 59 economists surveyed this week expect the pace of purchases to be reduced at the FOMC meetings on June 18-19 or July 30-31. Sixteen say tapering will begin at the Sept. 17-18 meeting, 14 see it happening Oct. 29-30 and 15 forecast the first tapering Dec. 17-18. Twelve see tapering next year or later.

“If jobs growth continues in the 150,000-to-200,000 per month range, that’s probably sufficient to lower the unemployment rateslightly,” said Tom Lam, chief economist at DMG & Partners Securities in Singapore. “Coupled with real GDP growth recovering to 2.5 percent, that would be sufficient for them to consider tapering modestly at the December meeting.”

“When the Fed does start to end QE, it will actually build confidence because it is another sign that the economy is getting better,” Paulsen said.

http://www.bloomberg.com/news/2013-06-06/economists-see-smaller-tapering-in-fed-qe-program-survey-shows.html