[{"bbox": [96, 153, 1163, 286], "category": "Text", "text": "Therefore, considering the increased pressure and anticipated demand from Blue Economy investments on coastal and marine ecosystems, a Blue Economy Strategy will enable coordinated and harmonised implementation and effective monitoring of coastal and marine resources with robust institutional, technological and information management structures at all levels. The new strategy should adopt all key Integrated Coastal Zone Management approaches, principles and tools for multiple management and development objectives."}, {"bbox": [96, 297, 1163, 379], "category": "Text", "text": "The Delegation concludes that on the basis of the key policy areas analysed above which serve as proxy public policies for the Blue Economy Strategy, the policies are relevant and credible. Therefore, the policies can be supported by the Commission with the proposed budget support contract."}, {"bbox": [85, 404, 375, 431], "category": "Section-header", "text": "### 2.3.3 Macroeconomic Policy"}, {"bbox": [96, 446, 1134, 656], "category": "Text", "text": "Tanzania's pre-pandemic growth trajectory was strong with an average annual GDP of 6.5% between 2013 and 2018. Although the pandemic has pushed the global economy into a recession in 2020, Tanzania kept its economy relatively afloat, with an official growth rate of 4.8% though World Bank (WB) and International Monetary Fund (IMF) growth estimates for 2020 were lower, around 1% and 2% respectively. The economic slowdown was mainly attributable to adversely affected export-oriented industries, especially tourism and traditional exports, and caused by a drop in foreign investment. So far, Tanzania has maintained its recently obtained status as middle-income country (LMIC), even though external shocks led to a slight decrease in Gross National Income per capita, which reached 1,080 in 2020."}, {"bbox": [96, 670, 1134, 883], "category": "Text", "text": "During 2021, the economy has started showing signs of recovery with a growth rate of 4.9%. After several years of discrepancies, the IMF and WB figures are now consistent with Government estimates. High frequency indicators from the WB show an upward trend as mobility, goods and services exports, tourist arrivals and credit to the private sector all rose during 2021. The rebound in economic growth is largely because of strong performance in accommodation and restaurant services, mining and electricity. The tourism industries in Tanzania Mainland and Zanzibar both got an impetus, even though tourist arrivals have not fully recovered yet. Overall, economic activity across sectors has not yet reached pre-pandemic levels. Depending on external developments and the pace of the Government's COVID-19 response, the WB predicts a 6% medium-term growth potential."}, {"bbox": [96, 895, 1134, 976], "category": "Text", "text": "Between September and December 2021, the IMF approved loans totalling $751 million to Tanzania under its Rapid Credit Facility in order to tackle the health and socio-economic challenges caused by the pandemic. Discussions on a possible new IMF programme are ongoing."}, {"bbox": [96, 986, 1134, 1306], "category": "Text", "text": "Tanzania's macro-economic framework remains relatively stable despite the external economic shocks that impact the fiscal deficit, public debt levels, the current account deficit. As part of the COVID-19 recovery, fiscal buffers have been replenished with official gross reserves sufficient to cover 6.1 months of imports in February 2022, exceeding national and regional thresholds. The Government also continues to successfully stabilise the trajectory of the Tanzanian Shilling against main trading currencies. Revenue shortfalls and elevated expenditure drove the fiscal deficit up to 3.9% in 2020/21. Whether the fiscal deficit indeed reverts back to projected levels of 2%, partly depends on external factors and the domestic policy response. The external sector faces continued strain due to the impact of the Russia-Ukraine conflict - also impacting cereals and fertilisers imports to Tanzania. The current account deficit doubled during February 2022 because of a rising import bill. Increased foreign inflows offset the negative trend so that the overall balance of payment has improved in recent months. The Government has a continued track record of ensuring stability in headline inflation, within the country target of 3-5%. Energy, fuel and food inflation have been more volatile, with recent upward pressure."}, {"bbox": [96, 1317, 1134, 1557], "category": "Text", "text": "During the pandemic, Tanzania's risk of debt distress increased to \"moderate\" and overall public debt levels rose to 40.6% in October 2021. The increase in the rating is caused by Tanzania's weakened ability to absorb shocks with sensitivity to a narrowing export base and by the lower debt burden thresholds corresponding to the new medium debt carrying capacity classification. Rising debt levels are driven by non-concessional borrowing to finance large capital projects, including the standard gauge railway, the major hydropower dam and the national airline. Domestic borrowing also increased to finance the widening fiscal deficit. A changing debt composition may lead to liquidity risks as commercial debt has increased from 3% of GDP in 2011 to more than 16% of GDP in 2021. While debt levels are still sustainable, debt service equalled 40% of domestic revenues in October 2021, putting increasing pressure on fiscal space."}, {"bbox": [96, 1568, 1134, 1623], "category": "Text", "text": "Domestic revenue mobilisation continues to be a priority for the Government of Tanzania to finance the FYDP III. The country's recent reclassification to LMIC and shifting priorities of traditional development partners is likely to"}, {"bbox": [1027, 1680, 1144, 1706], "category": "Page-footer", "text": "Page 11 of 36"}]