Tanzania’s GDP is forecast to shrink by 1.4% this year, the highest forecast figure in the country’s history, the government said on Friday.
The economy will shrink by 0.3% next year, according to the countrys latest economic update.
“The economy of Tanzania will be hurt by low demand and low growth,” said Toto Harika, Tanzania’s minister for economic development and finance.
“We are taking action to boost investment, but we need more resources.”
The government also announced that it would allocate up to $6.5 billion to address the country´s water shortage.
The government has said that the problem is worsening because of poor water management practices, but the latest update by the International Monetary Fund (IMF) has forecast that it will take until 2019 to restore a sustainable water supply.
Tanzania´s oil output is currently at around $1.4 million a barrel, with the country losing an estimated $2.3 billion from a shortfall in revenue due to high prices and a drop in oil prices from the Middle East.
Last year, Tanzania exported more than $2 billion worth of oil.
The IMF also reported that the country had one of the highest levels of corruption among the major oil exporters in Africa.
Tanzania also reported its first budget deficit in a decade, and the country has seen its growth stall in recent years.
The government has been grappling with a water crisis and is trying to cut its water consumption.
Last month, the country said it would phase out coal-fired power stations, reduce water use and improve sanitation.
The countrys new minister for water and sanitation, Yemane Gombo, said that Tanzania was on track to meet its goal of conserving 25% of its water supply by 2020.
The latest IMF report said that in 2015, the average annual usage of water for agriculture, domestic consumption, and industrial uses was 5,500 cubic meters per capita. Tanzania´ s government has also made several measures to combat the water crisis.
Last week, it announced that the government was putting an end to its use of the water cannon.
The move came after more than 2,000 water cannons were used during the last three months of 2015 to enforce the ban on drinking water.
The crackdown came amid an ongoing public outcry over the use of water cannon in the city of Mbale, which is located in the south of the country.
The report also said that a new $10 million fund was set to be set up to help businesses and people affected by water shortages.
Tanzania is also facing an economic crisis.
The recent oil price slump has left the country facing a $5.7 billion budget deficit, and inflation is expected to reach nearly 10%.
The IMF report estimated that Tanzania’s economic growth will slow to about 1.2% in 2019.
Tanzania will also face a shortfall of $3.3 million in revenue from the country, due to low oil prices.
Tanzania has had a low GDP growth rate since 2014.
It has also had a high unemployment rate and a weak economy.
Tunisia is also currently facing a political crisis.
Prime Minister Ibrahim Boubacar Keita resigned in April, just days after he was elected president.
Keita is accused of accepting bribes from the opposition and corruption charges have been filed against him.
Keiti has denied the charges.