Both the Uganda’s and Rwanda’s economies have some how managed to go through the tough times and survived much of the problems that came along with the Euro zone crisis however according to the reports got, Tanzania has not been that lucky in this case.
This was a report entitled “Shock Watch Bulletin” by the Overseas Development Institute, after monitoring the impact of the Euro zone crisis, China/India Slowdown, and energy price shocks on lower-income countries, shows that Tanzania faces the highest exposure to economic troubles in the Euro zone and slower growth in China, while Uganda and Rwanda are the least exposed among the East African Community (EAC) states. According to them, Uganda and Rwanda are not so much exposed to the external risks due to limited trade with Euro zone economies and much of Asia.
The healthy reserves and external debt portfolios also influenced Uganda and Rwanda’s positive rating that is according to the report. Considerable exports of valuable metals like gold and diamond to European markets and high revenues from tourism do contribute highly to the Tanzania’s economy but could harm its growth prospects at a time of economic decline in Europe.
This together with the rising trade with China, supported by mineral products has made Tanzania most prone to external economic and financial upset.
