Bountiful harvest keeps Tanzania economy stable
Tanzania, March 29 – Bountiful and successful harvest has maintained Tanzania economy low and stable, empowering businesses and investment opportunities. The food prices have been maintained at a good level to ensure the economy does not suffer the fluctuation of prices that hinder growth and development in the country.
2017 was a difficult year for the agriculture sector, with food insecurity ruining the party for the government having to seek avenues of help. Food prices shot up to balance the situation that was almost worsening due to climatic change and prolonged drought. The economic balance was altered with several businesses closing down.
With non-food inflation playing a crucial role in keeping the headline inflation stable, the country kicked-off the year on a great note. A number of investment opportunities have been made as the country seeks to be a middle income economy like their counterparts Rwanda, in the East African region.
The low inflation ease businesses from splashing cash on the effects of rising prices that could be uncomfortable for their operations. Economists and investors target such state of the economy as it maintains some international competitiveness, which most countries aspire to achieve.
The institutions can now practice the saving culture that has been the main gospel being preached all over, to give them financial security in times of needs rather than running to financial lenders for help. The general economic growth steadily rises with investments piling up.
An increase productivity is essential for a growing economy that requires a low inflated economy to sustain this capacity. Tanzania can bank on its exports to have a rigid economy, and gain international toughness and competition. The global financial crisis could be a stumbling block to the expansion of the economy which requires firm to act fast before there is a shift in the inflation level.