(Ecofin Agency) – In Tanzania, inflation decreased from 3.3% in July 2023 to 3% in July 2024, figures significantly lower than the 5% target set by the Bank of Tanzania.
In the first quarter of 2025, inflation in Tanzania is expected to remain low at between 3.1 and 4%. This is according to a statement from the Monetary Policy Committee published by the Bank of Tanzania on Wednesday January 8, 2025.
This estimate is mainly attributable to sufficient food reserves, exchange rate stability, reliable electricity supply as well as moderate prices of global raw materials, notably crude oil.
During the fourth quarter of 2024, annual inflation was around 3% due to favorable fiscal and monetary policies, and sufficient food supplies. “ Inflation remained stable throughout 2024, well below the 5% target in mainland Tanzania and approaching the same target in Zanzibar ”, we read in the statement.
In this East African country, growth has remained resilient, accompanied by low inflation. The latter fell from 3.3% in July 2023 to 3% in July 2024, below the Bank of Tanzania’s target of 5%. The institution has tightened its monetary policy to balance the foreign exchange market, according to the World Bank.
-The Bank of Tanzania remains optimistic about the country’s economic future. Forecasts for 2025 project growth of around 6%, driven by agricultural production, progress in construction projects, improved transportation and logistics, reliable electricity supply and tax policies and favorable monetary conditions.
Furthermore, the Monetary Policy Committee decided to maintain its key rate at 6% during the first quarter of 2025. According to the institution, the economies of mainland Tanzania and Zanzibar showed a solid performance in 2024, with an increasing trajectory demonstrating resilience and effective policy implementation. It projects growth of 5.7% in the fourth quarter of 2024.
Lydie Mobio (Intern)
Edited by MF Vahid Codjia
