Tanzania’s annual average GDP growth is forecasted to increase to 8.2% in 2020 thanks to improvements in power supply and development projects.
This is indicated in the Guidelines for the Preparation of Plans and Budget for 2017–2018, issued by Tanzania’s Ministry of Finance in November 2016.
Specifically, the average GDP growth forecast for Tanzania is supported by:
- improvement and stability in power supply mainly from natural gas, which is expected to boost performance of other sectors including manufacturing and trade;
- revival of the central railway line in standard gauge;
- increase in the capacity and efficiency of the Dar es Salaam and Tanga Ports;
- increase in financial deepening;
- implementation of economic policies under the Five Year Development Plan II (FYDP II);
- scaling-up of onshore gas production and construction of oil pipeline from Uganda to Tanzania.
The overall GDP growth for 2016 is projected at 7.2% supported by on-going implementation of the priority projects under the FYDP II.
The assessment is based on various indicators such as GDP growth in the first half of 2016, electricity generation, production and consumption based tax revenues, importation of industrial raw materials, and exports of manufactured goods.
Tanzania’s annual GDP growth rate averaged 7% over the past 5 years, making it one of the 20 fastest growing economies in the world and beating the Sub-Saharan Africa average GDP growth rate of 4.4% during the same period.