Tanzanian President Jakaya Kikwete has adjusted downward his country's economic growth rates for the past year and next, citing global financial crisis and domestic problems.
President Kikwete told fellow Tanzanians in his year-end address that the economy would grow at 7.7 percent instead of at 7. 8 percent in 2008 and that the growth rate for next year would decrease further to 7.3 percent, down from previously projected 8.1 per cent.
The president cited soaring fuel and food prices on international markets and slight food shortage domestically as having combined to cause the inflation hike that in turn more than offset the country's growth.
President Kikwete's government has planned to bring down inflation to 6 percent by June of 2008. But inflation ha spiralled instead to double digits in September and then to 12.3 percent in November.
The president has instructed the country's finance ministry and the central bank to work out measures to mitigate the effects on his country of the global financial crisis and economic downturn.