In-Depth Analysis
Tanzania
Tanzania has good prospects for economic growth, import cover levels are comfortable, and political risk is relatively low. However, these strengths are offset by weak socioeconomic indicators, structurally large current account and budget deficits, and rising debt levels. Another problem is that protectionist policies may begin to affect investment into the mining and energy sectors.
GDP growth rebounded in Q2 2019, recorded at 7.2% y-o-y from 6.6% y-o-y in the previous quarter (7.1% y-o-y in Q4 2019). The increase in GDP growth was mainly due to stronger performances by the services and industrial sectors. However, we expect GDP growth to ease from 7.0% in 2018 to 6.5% this year due to softer consumer demand, a slowdown in FDI inflows, and lower agricultural output (due to less favourable weather conditions compared to 2018). That said, the economic outlook is positive and supported by multiplier effects from public infrastructure investments, the expansion of services, and increasing hydrocarbons exploitation. (Source: Tanzania Quarterly Update, published December 2019)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-1.2 |
|
Consumer Price Index (% change y-o-y, avg) |
3.5 |
|
Current Account Balance (as a % of GDP) |
-3.3 |
|
Real GDP (annual % change) |
7.0 |
|
GDP per Capita, US$ |
1,014.1 |
|
Import Cover (months) |
6.1 |
|
Population, million |
56.4 |
| Total External Debt (as a % of GDP) |
32.5 |