Tanzania's economy bigger than previous thought: IMF

The International Monetary Fund (IMF) said on Thursday that the size of Tanzania's economy is much bigger than earlier thought.

The revised national accounts, which incorporate recent surveys and methodological improvements, suggest that the size of Tanzania' s economy is about 30 percent bigger than earlier thought, said the IMF in a statement released at the end of a two- week visit to Tanzania by an IMF mission.

"Recent macroeconomic developments have continued to be favorable. Growth is estimated to have been slightly over 7 percent in 2014, while inflation has dropped below the authorities' target of 5 percent," said the statement.

The nominal exchange rate against the U.S. dollar has depreciated, mainly reflecting the U.S. dollar strengthening relative to most other currencies, it said, adding that the gradual depreciation contributes to maintaining the competitiveness of Tanzania's exports and benefits farmers and other exporters.

The statement said the recent decline in international oil prices has contained the impact of the exchange rate depreciation on import costs.

"The recent international oil price decline will provide a boost to the economy in 2015 and help contain inflation," it said.

The IMF mission visited Tanzania from March 5 to 19 and initiated the second review under the Policy Support Instrument (PSI) program that was approved on July 16, 2014. Endi