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TANZANIA HAS MANAGED TO NOT ONLY overcome the aftermath of adverse weather shocks in 2005 and 2006 and an outbreak of Rift Valley Fever during 2007, but also shows signs of a recovering economy. Favourable weather conditions enabled a good harvest in 2007 and provided adequate water levels for the operations of hydropower dams that are themain source of electric power generation. The economy is projected to grow by 6.6 per cent in 2007 compared to 6.7 per cent in 2006.The outlook is encouraging for subsequent years aswell,withGDP growth expected tomaintain the same momentum, at 6.5 per cent in 2008 and 6.7 per cent in 2009. However, the recent increase in fuel prices, the newly announced wage regulations for the private sector and the political turmoil in Kenya may dampen this outlook.
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Document Type: Review Article

Publication date: May 1, 2008

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