In-Depth Analysis
Tanzania
Tanzania has sustained relatively high economic growth over the past decade and continues to show good prospects. Downside risks to the economic outlook include erratic economic policies, below potential FDI inflows, reliance on donor funding for public infrastructure development, and the government’s inability to manage fiscal finances effectively. Moreover, political risks are expected to heighten amid elections this year.
Real GDP growth eased to 6.8% y-o-y in the third quarter of 2019 compared to 7.1% y-o-y recorded in the corresponding quarter of 2018. The decline in GDP growth is mainly ascribed to weaker performances in the services and industrial sectors, offsetting stronger growth in the agricultural sector. Over the medium term, GDP growth should be sustained by upbeat fixed investment, an uptick in government expenditure, and the development of the hydrocarbon sector. Downside risks to the economic outlook include policy uncertainty, a weakening external balance, below potential FDI inflows, and poor weather conditions. (Source: Tanzania Quarterly Update, published February 2020)
Macroeconomic Data
(2019)
|
Fiscal Balance (as a % of GDP) |
-2.3 |
|
Consumer Price Index (% change y-o-y, avg) |
3.5 |
|
Current Account Balance (as a % of GDP) |
-2.3 |
|
Real GDP (annual % change) |
6.9 |
|
GDP per Capita, US$ |
1,071.8 |
|
Import Cover (months) |
6.1 |
|
Population, million |
58.0 |
| Total External Debt (as a % of GDP) |
31.2 |