HEADLINE inflation has dropped to reach 6.7 per cent in August from 16.0 per cent in December 2012, while economic growth rate reached 7.5 per cent last year.
The Minister for Finance and Economic Affairs, Dr William Mgimwa, attributed the trend to improved food supply in many parts of the country.
"Increased food reserves has helped to address challenge of food shortage in areas that experienced the problem," the Minister told a news conference in Dar es Salaam on Monday. Dr Mgimwa said the government has assured farmers that agricultural inputs will be available in most parts of the country in time.
"Since 75 per cent of the population is living in rural areas, the government has introduced different initiatives to support the people whose main activity is agriculture," he said. He said exports of goods and services rose for the period ended July, this year, by 1.3 per cent from US$ 8,161.5 million to US$ 8,269.6 million in 2012.
The minister said tourism and transportation dominated the country's export of services. "Both tourism and transportation service have contributed to the income by 80 per cent," he said.
Dr Mgimwa said during the period under review imports dropped by 0.7 per cent and it mostly involved raw materials for local industries and machinery.
He noted that the use of the Electronic Fiscal Devices-EFD which was introduced and being administered by the Tanzania Revenue Authority (TRA) has facilitated increased collection of government revenue.
The minister noted further that the government was improving the irrigation schemes to improve food security.