Economy grows by 5.4 per cent-BoT

TANZANIA’S economy has grown by 5.4 per cent compared to the projection of 4.7 per cent, for the first quarter of the year 2022.

The increase was seen in Zanzibar where its economy hiked by 5.1 per cent below a target of 5.4 per cent.

More so, by the end of August this year, the country’s foreign reserve reached 5,092 million US dollars, amount that is enough to cater for importation of goods and services for about 4.6 months.

The Bank of Tanzania Governor, Professor Florence Luoga said the economic growth was attributed to various sectors, including agriculture, construction, industries, and mining and tourism activities.

Prof Luoga who is also Chairperson of the Monetary Policy Committee (MPC) said the improvement in economic activities serves as a good signal for possibility of attaining the target for both sides of the Union.

The MPC sat to evaluate the implementation of monetary policy and economic trend for the period between July and August this year.

“The committee was impressed by the implementation of monetary policy by   expanding the coverage of the economic activities despite challenges caused by inflation,” he said.

Adding; “There is a slight increase in inflation whereas in Tanzania, the price hike for August was at 4.6 per cent up from 3.6 per cent that was recorded in March this year.”

The inflation per cent, however, is within the average ceiling of 5.4 per cent.

For Zanzibar, the inflation reached 5.4 per cent from 3.5 per cent of March. This was above the projection of 5 per cent.

The inflation in Zanzibar, according to the BoT Governor, was caused by the price hike of goods and commodities at the world market.

The government is expecting the inflation   per cent to remain stable due to the decline in   price of fuel at the world market with the Tanzanian currency continuing to remain strong.

Prof Luoga also attributed the increase in investment in the Mainland part and Zanzibar have played a crucial role in increasing money circulation and the economy at large.

Also, loans for the private sector increased to an average of 20 per cent for July and August compared to 10.7 per cent that was recorded   throughout the year.

Between July and August, the revenue collection was recorded at 93.8 per cent compared to 95.9 per cent of the target.

“But the expenditure has been made in line with the available resources,” noted Prof Luoga adding that revenue collection in Zanzibar was 96.4 per cent of the target.

He said this was caused by the emphasis that was put on the use of Electronic Fiscal Devices (EFD) Machines on revenue collection.

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