International Monetary Fund Finds Tanzania’s Macroeconomic Developments Favorable After First PSI Review

The Executive Board of the International Monetary Fund (IMF) has completed its first review of the economic performance of Tanzania under a program that is supported by the Policy Support Instrument (PSI) with reports indicating that Tanzania’s macro-economic developments are still favorable.

According to the Deputy Managing Director and Acting Chair of the Executive Board, Min Zhu, who spoke following the Board decision, the first half of 2014 reported strong economic growth and inflation levels are expected to remain close to 7%, which is in line with the authorities’ target of 5% by June 2015.

“Macroeconomic developments in Tanzania remain favorable,” he said, “Inflation remains in mid-single digits, consistent with the authorities’ target of 5% by June 2015.”

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Given the current economic setting, Mr. Zhu welcomed the commitment and reaffirmed intention on the part of the Tanzanian government to meet the budget deficit target and to review revenues and adjust expenditures accordingly and expressed a need to strengthen the coordination between fiscal and monetary policies.

The PSI is an instrument of the IMF that helps countries create more effective economic programs to be approved by the IMF Executive Board in an effort to show donors, multilateral development banks, and markets that the country’s policies have been supported and endorsed by the IMF.

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