The Global Financial Crisis and Developing Countries: An update of the monitoring work

The country’s economic context For about 10 years, Tanzania was among those sub-Saharan economies performing above the continent average economic growth rate and controlled inflation rate, before the effects of rising fuel and food prices and later the global crisis arrested this positive record. The country has also sustained stable and peaceful transformations from a centrally controlled economy and one-party rule to a market-determined economy and pluralistic democratic system. With growth projected at less than 5% in 2009 (compared with historical levels of above 7% per annum) and an inflation rate of about 10% (compared with below 6% in previous years), Tanzania is faced with multiple challenges of insulating itself from the crisis and preventing the erosion of gains made in social and economic spheres.