GDP grew by an estimated 7% last year after an increase of 6% in 2009 according to the government. This compares with the 2004-08 average of 7.3% pa and highlights the resilience of the Tanzanian economy in the face of global headwinds in the last few years. Growth has been driven by the strong performance of the gold industry, a rebound in agriculture after drought and then surging world food prices, a sharp increase in official transfers and sound macroeconomic policies that have enabled a significant fiscal and monetary stimulus. As a consequence the fiscal deficit widened to some 6.3% of GDP in 2009/10. Growth is projected to slow only slightly to 6.8% in 2011 as the economy continues to benefit from rising commodity prices and the global economic upturn. Inflation fell to 6.2% in 2010 from 12.1% in 2011 reflecting better weather conditions, which boosted local crops, as well as more favourable base effects, particularly from September. We expect inflation to average 6% this year. The current account deficit rose to some US$2bn or 8.2% of GDP last year. Goods exports surged by an estimated 33%, but goods imports also grew strongly by 24%. We expect the current account deficit to widen to 9.4% of GDP in 2011.