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.
Bucking a global trend, Tanzania has kept its economy open since the onset of the pandemic. Additionally, authorities have been lax about health care protocols and were slow to implement various support measures. Although the government’s approach creates a cloud of uncertainty, we expect the economic repercussions of Covid-19 to weigh heavily on several sectors, and for economic growth to plummet from 7.0% in 2019 to 0.7% in 2020. (Source: Tanzania Annual Country Profile, published November 2020)
Macroeconomic Data
(2019)
|
Fiscal Balance (as a % of GDP) |
-2.3 |
|
Consumer Price Index (% change y-o-y, avg) |
3.4 |
|
Current Account Balance (as a % of GDP) |
-2.2 |
|
Real GDP (annual % change) |
7.0 |
|
GDP per Capita, US$ |
1,051.2 |
|
Import Cover (months) |
6.4 |
|
Population, million |
58.1 |
| Total External Debt (as a % of GDP) |
36.7 |