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Tanzania’s economy continued to perform satisfactorily despite spillover effects from the global economy due to the COVID-19 pandemic, the central bank said on Tuesday.

The Bank of Tanzania said in a statement that the bank’s monetary policy committee assessment of the performance and outlook of the economy showed that it will grow at the projected 5.5 percent in 2020.

“The macro-economic indicators have continued to remain stable and within agreed regional ranges,” said the statement.

The statement added that inflation has remained low, averaging 3.3 percent from July to August 2020, and will range between three to five percent in 2020/21 financial year, as earlier projected.

“The projection is underpinned by adequate domestic food supply, stable exchange rate, moderate oil prices and prudent monetary and fiscal policies,” said the statement.

It said foreign exchange reserves remain adequate, above 5 billion U.S. dollars and covering about six months of imports.

The statement added that private sector credit growth is strong notwithstanding challenges on global supply chains attributable to the COVID-19 pandemic.