In-Depth Analysis
Tanzania
Tanzania has sustained relatively high economic growth over the past decade but downside risks include erratic economic policies, below-potential FDI inflows, and poor fiscal policy implementation. Tanzania adopted a relaxed approach to Covid-19 as President Magufuli downplayed the severity of the outbreak, but the economy has suffered due to supply-chain disruptions and a slump in tourism.
Although Tanzania did not implement a lockdown in the second quarter of 2020, the nation’s economy has not been able to escape the claws of the Covid-19 pandemic entirely. A slowdown in economic activity, coupled with stricter border control measures and supply chain disruptions will weigh on the economy this year. We expect the pandemic to have an adverse impact on several economic sectors, with the services sector being the hardest hit. As a result, we forecast the economy to contract by 1.1% in 2020. We also project wider twin deficits, a weaker local currency, a fall in FDI inflows and a drop in foreign reserves. (Source: Tanzania Quarterly Update, published July 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) |
-1.9 |
|
Real GDP (annual % change) |
6.8 |
|
GDP per Capita, US$ |
1,053.1 |
|
Import Cover (months) |
6.4 |
|
Population, million |
58.0 |
| Total External Debt (as a % of GDP) |
32.1 |