The Bank of Tanzania released data on 13 October 2025 showing that Tanzania’s economy grew by 5.4% in the first quarter of 2025 at constant 2015 prices, reflecting steady expansion across key industrial and service sectors.
The central bank publishes GDP at constant 2015 prices to provide a clear picture of real economic activity, eliminating the effects of inflation.
Industrial activity contributed significantly to the overall growth of the economy in Q1 2025, with electricity production recording a 19.0% increase, although this was lower than the 23.9% growth observed in Q4 2024, and markedly higher than the 7.6% growth reported in Q1 2024.
Mining and quarrying expanded by 16.6%, more than doubling the 8.5% recorded in the previous quarter and substantially higher than the 3.5% growth in Q1 2024.
Financial and insurance services also posted strong growth, rising 15.4% compared with 12.1% in Q4 2024 and 14.9% in Q1 2024, while manufacturing increased by 7.2%, reversing the slowdown to 3.9% in Q4 2024 and improving on 5.8% in Q1 2024.
Construction and water supply grew by 4.3% and 4.2% respectively, compared with 3.3% and 5.9% in Q4 2024, while the aggregate of all industrial sectors at basic prices rose 5.8%, slightly higher than the 5.5% in Q4 2024 and 5.3% in Q1 2024.
Agriculture, which remains a central component of Tanzania’s economy, recorded growth of 3.0% in Q1 2025, showing a slowdown from 4.2% in Q4 2024 but remaining above the 2.5% growth in Q1 2024, indicating continued expansion despite seasonal variations.
The services sector presented a varied performance, with transport and storage experiencing a notable rebound to 6.5% growth from 1.7% in Q4 2024 and slightly above 5.7% in Q1 2024.
Information and communication expanded by 7.8%, slowing from 15.1% in Q4 2024 and 14.6% in Q1 2024.
Professional, scientific, and technical activities grew by 5.1%, slightly lower than the 5.6% recorded in Q4 2024 but above the 4.5% growth in Q1 2024.
Trade and repair services increased by 3.5%, down from 5.4% in Q4 2024 and 5.3% in Q1 2024.
Accommodation and restaurants slowed to 2.3%, compared with 5.7% in Q4 2024 and 7.2% in Q1 2024, while administrative and support services rose by 3.7%, below 8.3% in Q4 2024 and 5.2% in Q1 2024.
Public administration grew by 4.1%, a slowdown from 8.9% in Q4 2024 and 5.0% in Q1 2024, and other services expanded 5.0%, compared with 8.0% in Q4 2024 and 8.6% in Q1 2024.
Education posted the strongest growth within the sector at 8.6%, up from 6.5% in Q4 2024 and 5.5% in Q1 2024, while health services grew by 4.1%, down from 11.1% in Q4 2024 and 9.0% in Q1 2024.
Real estate activities remained stable at 4.3%, unchanged from Q4 2024 and slightly above 4.2% in Q1 2024.
Taxes on products fell marginally by 0.1% in Q1 2025, reversing the increases of 4.4% in Q4 2024 and 3.7% in Q1 2024, while the overall GDP at market prices recorded growth of 5.4%, slightly above 5.2% in Q4 2024 and just below 5.6% in Q1 2024, illustrating a steady economic performance in the opening quarter of the year.
Tanzania GDP Growth Rate % by Activity at 2015 Prices
| Year | 2024Q1 | 2024Q4 | 2025Q1 |
| Agriculture | 2.5 | 4.2 | 3.0 |
| Industry and construction | |||
| Mining and quarrying | 3.5 | 8.5 | 16.6 |
| Manufacturing | 5.8 | 3.9 | 7.2 |
| Electricity | 7.6 | 23.9 | 19.0 |
| Water | 3.1 | 5.9 | 4.2 |
| Construction | 6.4 | 3.3 | 4.3 |
| Services | |||
| Trade and Repair | 5.3 | 5.4 | 3.5 |
| Accommodation & restaurant | 7.2 | 5.7 | 2.3 |
| Transport and storage | 5.7 | 1.7 | 6.5 |
| Information and communication | 14.6 | 15.1 | 7.8 |
| Financial & insurance | 14.9 | 12.1 | 15.4 |
| Public admi-nistration | 5.0 | 8.9 | 4.1 |
| Professional, Scientific & Technical act. | 4.5 | 5.6 | 5.1 |
| Administrative & Support services | 5.2 | 8.3 | 3.7 |
| Real estate | 4.2 | 4.3 | 4.3 |
| Education | 5.5 | 6.5 | 8.6 |
| Health | 9.0 | 11.1 | 4.1 |
| Other services | 8.6 | 8.0 | 5.0 |
| All indust. at basic prices | 5.3 | 5.5 | 5.8 |
| Taxes on products | 3.7 | 4.4 | -0.1 |
| GDP at market prices | 5.6 | 5.2 | 5.4 |
Source: Bank of Tanzania
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