Tanzanian economy fails to hit target in 2003 because of drought

DAR ES SALAAM (AFP) May 31, 2004
Tanzania's economy failed to reach its target of 6.3 percent growth in 2003, expanding at just 5.6 percent due to the impact of drought on agriculture, a government minister said on Monday.

"The economy grew by 5.6 per cent in 2003, well below the 6.3 per cent target, because the agricultural sector grew by only 4.0 percent during the period, down from 5.0 per cent in 2002," minister of state for planning and privatisation Abdallah Kigoda told parliament's finance and economic affairs committee.

"In 2003, drought hit most parts of Tanzania, thus adversely affecting the key agricultural sector and bringing down production," Kigado explained to the committee at a pre-budget briefing on the country's economic developments.

Kigoda also told the committee that inflation was expected to go down to four percent at the end of June 2005, but pointed out that it has been rising of late because of higher food and fuel prices.

He said inflation was at 4.2 percent in February last year, but had risen to 4.6 percent in December and hit 6.5 percent in April this year.

The budget is due to be presented on June 10.

TERRA.WIRE