DAR ES SALAAM, June 12 (Xinhua) -- Tanzania's gross domestic product (GDP) is projected to grow by 6 percent in 2025 and 6.1 percent in 2026, a cabinet minister announced Thursday.
The forecast was presented to parliament by Kitila Mkumbo, minister of state in the President's Office responsible for Planning and Investment, during his presentation of the government's proposed national development plan for the 2025/2026 financial year.
Mkumbo said that from January to September 2024, real GDP grew at an average rate of 5.6 percent, up from 5.1 percent during the same period in 2023.
He attributed the growth to continued government efforts to improve infrastructure in key sectors such as transportation, energy, water, health, and education, increased lending to the private sector, and improvements in the investment and business environment.
Mkumbo also noted that the average inflation rate in 2024 declined to 3.1 percent, down from 3.8 percent in 2023.
As of January 2024, the inflation rate stood at 3.1 percent, compared to 3.2 percent in the same month in 2023, well within the national target range of 3 to 5 percent, he said.
"These rates are also in line with targets set by the East African Community, which aims to keep inflation below 8 percent, and the Southern African Development Community, which targets a range of 3 to 7 percent," he added.
Mkumbo attributed the decline in inflation to sound monetary policies, reduced prices of key commodities such as construction materials, household furniture, and clothing fabrics, as well as the country's self-sufficiency in food production. ■
