DODOMA (Reuters) - Tanzania’s economy is seen growing 7.8 percent in 2008, as forecast, and will rise to 9.2 percent in three years time, the finance minister said.

In 2007, the Tanzanian economy grew by 7.3 percent.

"The economy will grow by 7.8 percent in 2008, 8.1 percent in 2009, 8.8 percent in 2010 and 9.2 percent in 2011," Finance Minister Mustafa Mkulo said in an economic survey presented to parliament in Dodoma on Thursday.

Mkulo said the east African country’s GDP grew 7.1 percent in 2007, compared with 6.7 percent in 2006, led by telecommunications, financial services and construction.

"Inflation will be kept below 7.0 percent by the end of June 2009," he said. Average inflation in 2007 was 7.0 percent.

Mkulo released the survey ahead of making the country’s 2008/09 (July-June) fiscal budget speech later on Thursday.

Mkulo’s forecast comes at a time when high food and oil prices are eating into economies worldwide, and this could be a challenge to growth as it fuels high inflation.

Source: Reuters Africa