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.
Real GDP growth is projected to reach 4.2% this year, which is notably higher than our estimate for an expansion of 0.7% in 2020. The industrial sector is expected to remain the primary driver behind this relatively strong growth, with infrastructure investment gaining traction due to a pickup in public development spending and ongoing progress regarding large infrastructure projects. (Source: Tanzania Quarterly Update, published January 2021)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
-2.4 |
|
Consumer Price Index (% change y-o-y, avg) |
3.3 |
|
Current Account Balance (as a % of GDP) |
-1.1 |
|
Real GDP (annual % change) |
0.7 |
|
GDP per Capita, US$ |
1,056.6 |
|
Import Cover (months) |
6.4 |
|
Population, million |
59.7 |
| Total External Debt (as a % of GDP) |
38.0 |