Front Matter Page

© 2004 International Monetary Fund

September 2004

IMF Country Report No. 04/284

Tanzania: Selected Issues and Statistical Appendix

This Selected Issues paper and Statistical Appendix for Tanzania was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on July 23, 2004. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Tanzania or the Executive Board of the IMF.

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Front Matter Page

INTERNATIONAL MONETARY FUND

TANZANIA

Selected Issues and Statistical Appendix

Prepared by Robert Sharer (head), Volker Treichel, Peter Dohlman, Zaijin Zhan, Alex Pivovarsky, and Tania Reif

Approved by the African Department

July 22, 2004

Contents

• Selected Issues

• I. External Competitiveness and Export Performance in Tanzania

  • A. Introduction

  • B. Real Exchange Rate and Competitiveness

  • C. Equilibrium Real Exchange Rate and Competitiveness

  • D. Qualitative Measures of Competitiveness

  • E. Tanzania’s Export Performance in the 1990s

  • F. Conclusions

  • Figures

  • 1. Real Effective Exchange Rate Trends, December 1990–January 2004

  • 2. Export-Weighted Real Exchange Rates, 1990:I–2003:IV

  • 3. Bilateral Real Exchange Rates for Major Currencies, 1990:I-2003:IV

  • 4. Regional Real Effective Exchange Rates, January 1990–February 2004

  • 5. The Equilibrium Real Exchange Rate, 1980–2003

  • 6. Exports and the Real Effective Exchange Rate, 1993–2003

  • 7. Exports and the Real Effective Exchange Rate, 1993–2004

  • Tables

  • 1. Trade Weights for Real Effective Exchange Rate

  • 2. Real Effective Exchange Rates and their Components for Tanzania and Other Regional Economies

  • 3. ADF Unit-Root Tests

  • 4. Cointegrating Vector for CPI-Based RER

  • 5. Competitiveness Index Rankings of Tanzania Relative to African Countries

  • 6. Business Climate Relative to Regional Competitors, 2003

  • 7. Exports Growth

• II. An Assessment of Public Domestic Debt Evolution in Tanzania

  • A. Background

  • B. Public Domestic Debt in Tanzania

  • C. The Model

  • D. Simulations

  • E. Evolution of Public Domestic Debt under Alternative Cases

  • F. Conclusions

  • Figures

  • 8. Public Domestic Debt, 1993/94–2002/03

  • 9. Domestic Debt vs. External Debt, 1993/94–2002/03

  • 10. Interest Payments on Domestic Debt, 1991/92–2003/04

  • 11. Public Domestic Debt Stock (Case I and Case II)

  • 12. Public Domestic Debt Stock (Case I and Case III)

  • 13. Public Domestic Debt Stock (Case I and Case IV)

  • 14. Public Domestic Debt Stock (Case I, V, and VI)

  • Tables

  • 8. Public Domestic Debt, 1993/94–2002/03

  • 9. Domestic Debt in Selected African Low-Income Countries (2000)

  • 10. Summary of Nonsecuritized Liabilities, 2002/03

• Statistical Appendix Tables

• 1. Gross Domestic Product at Constant 1992 Prices, 1997–2003

• 2. Gross Domestic Product at Current Prices, 1997–2003

• 3. Gross Domestic Product and Expenditure at Constant 1992 Prices, 1997–2003

• 4. Gross Domestic Product and Expenditure at Current Prices, 1997–2003

• 5. Production of Major Food Crops and Purchases of Principal Exports, 1997/98–2003/04

• 6. Production of Selected Manufactured Commodities, 1997–2003

• 7. Gross Capital Formation by Public and Private Sectors, 1997–2003

• 8. Analysis of the Savings-Investment Relationship, 1997–2003 (At current prices)

• 9. Analysis of the Savings-Investment Relationship, 1997–2003 (At constant 1992 prices)

• 10. Average Producer Prices for Selected Export Crops, 1997/98–2003/04

• 11. Central Government Operations, 1999/00–2003/04

• 12. Summary of Central Government Revenue, 1999/00–2003/04

• 13. Summary of Central Government Expenditure, 1999/00–2003/04

• 14. Budgetary Transfer Payments, 1999/00–2003/04

• 15. Central Government Expenditure on Priority Sectors, 1999/00–2003/04

• 16. Monetary Survey, 1997–2003

• 17. Summary Accounts of the Bank of Tanzania, 1997–2003

• 18. Summary Accounts of Domestic Money Banks, 1997–2003

• 19. Commercial Bank Domestic Lending by Borrowing Sectors, June 1997–December 2003

• 20. Structure of Interest Rates of Financial Institutions, 1997–2003

• 21. Financial Indicators for the Banking Sector, 1998–2003

• 22. Balance of Payments, 2000/01–2003/04

• 23. Value, Unit Value, and Volume Indices of Exports and Imports and Terms of Trade, 1997–2003

• 24. Value, Volume, and Unit Value of Principal Exports, 1997/98–2003/04

• 25. Composition of Exports, 1997–2003

• 26. Destination of Exports, 1997–2003

• 27. Value of Principal Imports, 1997–2003

• 28. Composition of Imports, 1997–2003

• 29. Sources of Imports, 1997–2003

• 30. Services Account of the Balance of Payments, 1997–2003

• 31. Zanzibar: Selected Economic Indicators, 1997–2003

• 32. Zanzibar: Social and Demographic Indicators, 1997–2003

• 33. Summary of the Tax System, as of July 1, 2004