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.
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 |