Economy of Tanzania
From Wikipedia, the free encyclopedia
The economy of Tanzania is a lower-middle income economy[23][24] that is overwhelmingly dependent on agriculture.[25] Tanzania's economy has been transitioning from a planned economy to a market economy since 1985. Although total GDP has increased since these reforms began, GDP per capita dropped sharply at first, and only exceeded the pre-transition figure in around 2007.[26]
Currency | Tanzanian shilling (TSh) |
---|---|
1 July – 30 June | |
Trade organisations | AU, AfCFTA (signed), EAC, SADC, WTO |
Country group |
|
Statistics | |
Population | 61,741,120 (2022)[3] |
GDP | |
GDP rank | |
GDP growth |
|
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
3.9% (2020 est.)[8] | |
12% (2014)[9] | |
Population below poverty line | |
40.5 medium (2017)[12] | |
Labour force | |
Labour force by occupation | Agriculture: 50%[17]: page 56 |
Unemployment | 2.2% (2017)[18] |
Main industries | agricultural processing (sugar, beer, cigarettes, sisal twine); mining (diamonds, gold, and iron), salt, soda ash; cement, oil refining, shoes, apparel, wood products, fertilizer[7] |
External | |
Exports | $5.6685 billion (105th; October 2015)[19] |
Export goods | gold, tobacco, cashews, sesame seeds, refined petroleum |
Main export partners | India 20% United Arab Emirates 13% China 8% Switzerland 7% Rwanda 6% Kenya 5% Vietnam 5% (2019)[20] |
Imports | $10.441 billion (FOB; October 2015)[19] |
Import goods | refined petroleum, palm oil, packaged medicines, cars, wheat |
Main import partners | China 34% India 15% United Arab Emirates 12% (2019)[20] |
FDI stock | $12.715 billion (2013)[21] |
–4.002 billion (October 2015)[19] | |
Gross external debt | $15.4 billion (October 2015)[19] |
Public finances | |
37% of GDP (2017 est.)[7] | |
–1.8% (of GDP) (2017 est.)[7] | |
Revenues | $12.88 billion (2022 est.) |
Expenses | $14.91 billion (2022 est.) |
Economic aid | $490 million (recipient; 2014)[22] |
n/a (TBD) | |
$4,383.6 million (4.5 months of imports; 2013)[19] | |
Following the rebasing of the economy in 2014, the GDP increased by a third to $41.33 billion.[27]
In 2020, the real GDP of Tanzania grew by 4.8% reaching US$64.4 billion versus US$60.8 billion in 2019. This growth made it the 2nd largest economy in East Africa after Kenya, and the 7th largest in Sub-Saharan Africa.[28]
It has sustained relatively high economic growth compared to global trends, as is characteristic of African nations. According to World Bank data, the last 5 years have seen the slowest growth since 2000. The medium-term outlook is so far positive, with growth projected at 6 percent in 2020/21, which is supported by large infrastructure spending.[29][30]
The World Bank (WB) expects the economic growth of Tanzania to slow to 2.5% in 2020[31] due to the COVID-19 pandemic which has affected the labor market, the production capacity, and productivity. Tourism has halted, and exports of manufacturing and agricultural goods slumped.
On 7 September 2021, the IMF approved US$567.25 million in emergency financial assistance to support Tanzania’s efforts in responding to the COVID-19 pandemic[32] by addressing the urgent health, humanitarian, and economic costs.
The IMF projects a GDP growth for Tanzania of +4.0% and +5.1% in 2021 and 2022,[33] and 6.0% in 2026.
According to the World Bank, the GDP of Tanzania expanded by 4.6% in 2022, up from 4.3% in 2021.
The value of Tanzania's GDP at current prices reached USD 75.5 billion in 2022.[34]
The World Bank projects Tanzania's GDP growth to reach 5.1% in 2023.