Tanzania's domestic economic outlook for 2024 remains strong: central bank-Xinhua

Tanzania's domestic economic outlook for 2024 remains strong: central bank

Source: Xinhua

Editor: huaxia

2024-02-20 01:40:45

DAR ES SALAAM, Feb. 19 (Xinhua) -- Tanzania's domestic economic outlook for 2024 is expected to remain strong, the country's central bank said on Monday.

In its Monetary Policy Statement for Mid-Year Review 2023/2024, the Bank of Tanzania (BoT) said output growth in Tanzania's mainland is projected at about 5.5 percent in 2024, while Zanzibar's economy is projected at 7.4 percent.

The statement said public and private investment, reforms to improve the business environment, and a rebound in tourism activities are expected to contribute significantly to the growth projection.

In addition, the ongoing rains will, on balance, contribute positively to output growth, according to the statement.

The statement said there are also prospects of increased power generation from the Julius Nyerere Hydropower Project and other sources during the second half of 2023/2024.

However, the statement said the main risks to the growth outlook are geopolitical tensions and monetary policy tightening in advanced economies.

Inflationary pressures are expected to remain muted in the second half of 2023/2024 and throughout 2024, said the statement.

It said headline inflation is expected to be low, in line with the target of 5 percent, in both the mainland and Zanzibar, attributing the low inflationary environment to the expected adequate food supply, moderate food and oil prices in the world market, exchange rate stability, and the impact of monetary policy.