Economic climate good: Survey

Chinese and Tanzanian businesspeople hold a meeting. Life satisfaction depends on how people are fulfilled in their plans and life in general. PHOTO | FILE 

By Sturmius Mtweve, The Citizen Reporter

In Summary

This is according to the Listening to Dar es Salaam Report No 25 on Consumption and Economic Hardships by Uwazi/Twaweza, which shows that public confidence in the current economic status, has increased – that citizens are becoming less negative about the economic climate.

Dar es Salaam. The majority of Dar es Salaam residents are confident with their current personal and the country’s economic status, as a result of reduced economic hardships.

This is according to the Listening to Dar es Salaam Report No 25 on Consumption and Economic Hardships by Uwazi/Twaweza, which shows that public confidence in the current economic status, has increased – that citizens are becoming less negative about the economic climate.

The report, which presents the results of the fourth mobile survey on citizens’ consumption and economic hardships, explores changes in food consumption and people’s perceptions of their economic situation.

The study was based on mobile phone interviews which involved 321 citizens in all three districts of Dar es Salaam – Ilala, Kinondoni and Temeke.

“The results suggest that between 2010 and January 2012 citizens had become increasingly negative with respect to the economic situation of both themselves and that of the country,” says the Listening to Dar es Salaam Report No 25.

However, starting with the beginning of 2012, the report indicates that the percentage of those, who were negative about their personal economic situation had dropped by more than a fifth, from 73 per cent to 57 per cent.

These changes are being attributed to a steady downward trend in the country’s annual inflation that came after large increases throughout 2011, which hit 19.8 per cent.

For example, inflation rate, which was in the last few years worrisomely high, dropped from 12 per cent in 2012 to 5.6 per cent as of December 2013, although the government is now striving to attain a five-per cent inflation rate by June this year amid expectations of achieving great success.

In his recent remarks, President Jakaya Kikwete said Tanzania had registered strong economic growth of 7.1 per cent in 2013, with 2014 projections expected at 7.3 per cent, noting that the country had set its sights on a five per cent inflation rate by June 2014.

However, although the residents are still confident in the current economic status, economic uncertainty and pessimism about the future are still persisting among them.

The report says to gauge the overall economic climate, respondents were also asked about their current financial situation compared to 12 months earlier, as well as their economic expectations for the near future, in which about one third of the respondents reported that the previous year had brought about no change in their economic situation (36 per cent), while half saw their situation worsen (30 per cent) or worsen a lot (19 per cent).

A mere 15 per cent think they are now better off financially than they had been 12 months before. The survey also reveals a high degree of uncertainty and pessimism among citizens with respect to their near economic future.