The Monetary Policy Committee (MPC) of the Central Bank has reported that the national income of mainland Tanzania has experienced satisfactory growth rates, reaching 5.4% and 5.2% in the first and second quarters, with an expectation of achieving an estimated growth rate of 5.3% for the year 2023.
For Zanzibar, there was a remarkable growth of 6.2% in the first quarter of 2023, with a high possibility of reaching the target growth rate of 7.1% for this year.
These statistics were the results of the committee’s 228th meeting held on October 27 this year, aimed at evaluating the implementation of financial policies, economic trends, and directions in the country.
Furthermore, the committee has noted that the inflation rate on the mainland has decreased to 3.3% in September 2023 from 3.6% in June this year, primarily influenced by declining food prices.
However, the committee has observed that the global economy has not yet stabilized despite the higher-than-expected growth achieved in the first half of the year.
“This trend is due to the tightening of financial policies in many countries worldwide, political conflicts, and rising oil prices. Inflation has decreased from the levels reached in 2022, although it remains above the targets for many countries,” stated the Monetary Policy Committee’s report.
The committee has also reported that foreign exchange reserves have remained at satisfactory levels, totalling approximately 5 billion US dollars from July to October 2023, a sufficient amount to cover the import of goods and services, exceeding the East African Community’s recommended levels of four months and 4.5 months, respectively.