"Tanzania Business Forecast Report Q2 2013" Published

Core Views

We are forecasting the Tanzanian economy to grow by 7.1% y-o-y in 2013 up from an estimated 7.0% in 2012 driven by robust private consumption and investment.

We maintain our view that inflation will continue to decline in Tanzania, reaching 7.8% by the end of 2013. This is largely thanks to prudent monetary and fiscal policy keeping a lid on demand-side inflationary pressures.

An improving macroeconomic climate will allow Tanzanian banks to benefit from attractive structural dynamics due to a low base and a healthy real GDP growth outlook. Furthermore, the proliferation of mobile money services should accelerate the uptake of banking services while high net interest margins bode well for bank profitability.

Raids of gold mines and violent protests against a planned gas pipeline in southern Tanzania are a sign of growing discontent stemming from a sense that average citizens are not benefitting from the country's mineral wealth. Although we do not think that these isolated incidents are likely to escalate into widespread unrest, we do believe that risks will build the longer that concerns go unaddressed.

------------------------------------------------------------
Full Report Details at
- http://www.fastmr.com/prod/584483_tanzania_business_forecast_report_q2_2013.aspx?afid=301
------------------------------------------------------------

Key Risk To Outlook

The major risk to our outlook comes from the weather. Poor rains would not only exacerbate tight food supplies (food price inflation was the major driver of rapidly rising headline inflation in 2011) but would also once again hamper hydroelectricity production, raising costs for businesses and, by extension, consumers.

The country's infrastructure deficit is another concern; a failure to make significant progress would likely hold the economy back from reaching its significant potential.

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

You may also be interested in these related reports:

- Brazil Business Forecast Report Q2 2013
- Germany Business Forecast Report Q2 2013
- Hungary Business Forecast Report Q2 2013
- Tanzania Business Forecast Report Q2 2013
- Philippines Business Forecast Report Q2 2013