THE International Monetary Fund (IMF) has said Tanzania's gross domestic product is expected to grow by 7 per cent this year in line with the government's target, but warned that an ever tighter squeeze on the liquidity of the shilling could hurt banks and slow down the economy. The IMF said in a statement released late on Monday that the ongoing liquidity tightness in the economy, which has been partly caused by the government's spending cuts, could increase the cost of borrowing and pose risks to the economy.
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