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.
Economic growth is expected to ease slightly this year and in 2019. Public investment has been hamstrung by bureaucratic delays and funding issues, while weak private sector credit growth continues to weigh on the services sector. However, Tanzania is expected to remain one of the fastest growing economies on the continent, driven by the development of the country’s natural gas sector and favourable demographics. On the political front, President Magufuli runs the risk of scaring off Western aid donors and investors who cannot be associated with repression and anti-democratic policy. (Source: Tanzania Quarterly Update, published December 2018)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-1.2 |
|
Consumer Price Index (% change y-o-y, avg) |
3.6x |
|
Current Account Balance (as a % of GDP) |
-4.2 |
|
Real GDP (annual % change) |
6.7 |
|
GDP per Capita, US$ |
953 |
|
Import Cover (months) |
6.6 |
|
Population, million |
59.2 |
| Total External Debt (as a % of GDP) |
37.3 |