Kitila Mkumbo, Tanzania’s Minister of State in the President’s Office for Planning and Investment, announced today in Parliament that Tanzania’s economy is expected to expand by 5.4% this year, a faster rate compared to 2023.
He made the announcement while presenting The Economic Survey Report For The Year 2023 And The Annual Development Plan For The Fiscal Year 2024/25.
The projected GDP growth rate for 2024 is higher than the 5.1% recorded in 2023 and the 4.7% in 2021. However, the Report stresses that economic growth has been concentrated in a few sectors, which do not employ many people from poor households.
In 2023, the sectors that experienced the highest growth include creative industries (17.7%), finance and insurance (12.2%), mining (11.3%), and food and accommodation (8.3%).
Conversely, sectors expected to create significant employment, such as agriculture (4.2%), industry (4.3%), and trade (4.2%), saw slower growth rates.
Mkumbo also anticipates inflation to remain within the 3-5% range in the upcoming fiscal year, and the budget deficit (including grants) not to exceed 3% of GDP.
The 2024/25 fiscal year will introduce measures aimed at strengthening the control and monitoring systems for government programs and projects. Each sector will be required to specify Key Performance Indicators (KPIs) and outline activities aimed at achieving these targets.
Implementation reports will be submitted weekly to the responsible Ministry and monthly to the Planning Commission of the Ministry for Planning and Investment. Annually, the Planning Commission will produce a consolidated report on program and project implementation in an open event.
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