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.

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