Tanzania’s central bank on Monday described as satisfactory the country’s economic growth recorded in 2021.
The Bank of Tanzania said in a statement that the country’s mainland economy grew 4.9 percent in 2021, a little below the growth target of 5 percent. Meanwhile, Tanzania’s Zanzibar reported a growth of 5.1 percent in 2021, also lower compared with the target of 5.2 percent.
According to the statement, the global economy continued to face challenges of rising inflation, high commodity prices, the resurgence of COVID-19, and supply-chain disruptions caused by the Russia-Ukraine conflict.
“The challenges have increased risks to the recovery of global and domestic economic activities,” said the statement that was released at the end of the monetary policy committee meeting.
Inflation was higher in 2021/2022 than in the preceding year, due to rising commodity prices, especially those of oil and consumer goods, said the statement.
It added that the money supply expanded in line with the target, bolstered by accommodative monetary policy and improving business conditions.
The statement said private sector credit growth was 13.4 percent, surpassing the target of at least 10.6 percent; and fiscal operations were on track, with revenue collection recovering, consistent with economic activities and improved tax compliance.
