Tanzania Economic Growth Remain Strong But Is Expected to Soften

Sub Saharan Africa GDP growth 2017

The World Bank (WB) recently published its 16th edition of the Africa’s Pulse, a biannual analysis of African economies, confirming the robust growth of Tanzania. 

However, the GDP growth of Tanzania is expected to soften, partly due to the under-execution of fiscal plans.

On a regional scale, following a sharp slowdown over the past two years, a recovery is underway in Sub-Saharan Africa, the report indicates.

GDP growth in Sub-Saharan Africa is expected to strengthen to 2.4% in 2017 from 1.3% in 2016, slightly below the pace previously projected.

However, the recovery is challenged by the regional per capita output growth, forecasted to be negative for the second consecutive year.

Investment growth also remains low, and productivity growth is falling.

The slight rebound is being led by the region’s largest economies.

GDP growth is stable in non-resource intensive countries, among which Tanzania is included, supported by domestic demand.

The World Bank currently forecasts an annual GDP growth rate for Tanzania of 7.1% for 2017, 2018 and 2019, and an average 6.2% between 2017 and 2026.

RELATED:  Tanzania GDP Slow Down to 5.7% in Q1 2017