Dodoma, 24 January 2022 (TDI): Tanzania has seen impressive gains in its economy even while the COVID-19 pandemic continues to ravage the world. Currently, Tanzania is the fastest growing economy in Africa and among the fastest-growing economies in the world.
Tanzania has had an average growth rate of 6.3% between 2010 and 2019. According to The International Monetary Fund (IMF), the real GDP of Tanzania grew by more than 4.7% in 2020 reaching an impressive $64.4 billion.
According to the National Data of Tanzania Mainland, services accounted for most of the share of the GDP at 40%. 31.1% of the GDP accounted for the construction industry while agriculture, fishing, and forestry contributed 28.9%.
According to the East Africa Economic Outlook 2021 report, Tanzania’s GDP will grow by 4.9% in 2022 and increase to an even greater 6.3% in 2023. The African Development Bank (AfDB) predicted that Tanzania’s gross domestic product remains solid in 2020 at 6.4% but increased by 0.2 points in 2021 to 6.6%.
However, this is subject to various factors which include reduced financial sector vulnerabilities, the implementation of reforms to improve the business environment as well as favorable weather conditions.
Adequate rains, increased public investment, and increased exports have improved the outlook of the economy. Tanzania has increased its earnings from exports due to an increased price of gold worldwide, the mining sector has greatly contributed to this.
The Bank of Tanzania predicts economic recovery in the country to be more gradual than expected. Tanzania’s new President Samia Suluhu Hassan expects the GDP to reach a growth rate of at least 8%. In 2019, Tanzania became a middle-income country when the gross national income per capita rose to $1,080 while most African countries average out to about $1,550.
The average inflation rate has also gone down in the country since 2012, as it stood at 16% and in 2021 it dropped down to just 3.7%. Exports of goods and services amounted to $8,839.9 million at the end of 2020, this was done from last year due to a decrease in tourism because of the COVID-19 pandemic.
Tanzania has shown impressive economic growth despite the effects of the pandemic, surpassing many similar African economies and becoming one of the fastest-growing economies in the world.