Tanzania's economy grew by 7.1 percent in the third quarter of 2009 from the same period a year earlier, thanks to increases in output from all sectors except fishing, official data showed last week.

The National Bureau of Statistics (NBS) said in a statement that it was the fastest year-on-year expansion since the third quarter of 2008, when the country's economy grew by 9.1 percent.

Agriculture, the largest sector of the economy accounting for 32 percent of gross domestic product, posted 2.7 percent growth, compared with 2.5 percent in the second quarter and 0.3 percent in the first three months of 2009.

NBS said there were increases in the country's major food crops. Maize production rose 12 percent, the rice harvest climbed 17 percent, the millet/sorghum harvest jumped 22 percent and cassava leapt 32 percent.

Like most East African countries, Tanzania was hit by drought and the global economic slowdown in late 2008 and the early part of 2009.

More favourable rains have subsequently boosted food production, raised water levels at hydro-electric dams and helped slow inflation.

The International Monetary Fund is expecting Tanzania's economy to grow by 6.2 percent in 2010 after expansion of 5.5 percent last year.

Gross domestic product grew by 7.4 percent in 2008 and 7.1 percent in 2007.

The mining sector in Africa's third largest gold producer grew 6.1 percent in the third quarter from a year earlier after a 33.3 percent decline in the second quarter and a 40.3 percent slump in the first three months of the year. 

"The latest increase is attributed to the injection of gold from Buzwagi gold mine that started operation in late June 2009 and produced 2,800 kg of gold during the quarter," the statistics bureau said.

The Buzwagi mine is operated by African Barrick Gold, the London-listed subsidiary of Barrick Gold Corp, the world's largest gold miner.

Seasonally-adjusted growth was 1.6 percent in the third quarter from the previous three months, roughly in line with quarter-on-quarter expansion of 1.7 percent in both of the first two periods of 2009.