Tanzania GDP Grew by +4.3% in Q2 2021 Thanks to Increased Crop Production

Tanzania GDP Growth 2014-2021

During the second quarter (Q2) of 2021, the value of Tanzania’s Quarterly Gross Domestic Product (QGDP) in absolute terms at current prices increased to TZS 38.9 trillion from TZS 37.2 trillion in the same quarter of 2020.

Further, the value of QGDP at constant prices also increased to TZS 33.3 trillion in the second quarter in 2021 from TZS 32.0 trillion in the corresponding quarter in 2020 equivalent to a QGDP growth of 4.3%.

This is indicated in the latest Highlights On The Second Quarter Gross Domestic Product (April – June) 2021, Base Year 2015, recently released by the Tanzania National Bureau of Statistics (NBS) and the Ministry of Finance.

Tanzania Q2 2021 GDP Growth and Contribution by Economic Activities

During the period under review, the economic activities that significantly contributed to growth were: Agriculture (13.1%), Transport and Storage (8.4%); Trade and Maintenance (8.4%); Mining and Quarrying (7.6%); Manufacturing (7.6%), Construction (7.1%); and Information and Communication (5.2%).

Information and Communication recorded the highest growth rate of 12.3%, followed by Electricity (12.1%), Other Services including Arts and Entertainment, Activities of Households as an employer (10.8%), Accommodation and food services (10.1%), Water Supply (8.4%), and Mining and Quarrying (7.3%).

Tanzania Second Quarter Economic Activity Growth Rates in 2021
Source: National Bureau of Statistics

Tanzania Crops

Tanzania’s agriculture sector includes the exploitation of vegetable and animal natural resources that comprise of growing of crops, raising and breeding of animals, harvesting of timber and other plants, animals or animal products from a farm or their natural habitats.

The crop growing activity grew by 2.2% in the second quarter of 2021 compared to 4.5% observed in the corresponding quarter of 2020. The growth was attributed to favorable rainfall in the production areas.

Major crops that accounted for an increase include maize that increased by 2.0%, from 3.224 million tons in the second quarter in 2020 to 3.290 million tons in 2021.

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Beans and pulses increased by 7.9%, from 119 thousand tons in the second quarter in 2020 to 129 thousand tons in the similar quarter of 2021.

Sorghum harvested increased by 23.3%, from 93 thousand tons in the second quarter in 2020 to 115 thousand tons in the second quarter of 2021.

Round potato increased by 2.9%, from 87 thousand tons in 2020 to 89 thousand tons in the similar quarter of 2021.

Paddy increased by 5.4%, from 1,824 thousand tons in 2020 to 1,922 thousand tons in the similar quarter of 2021.

Tanzania Production of Selected Crops, Second Quarter 2020 and 2021
Source: Ministry of Agriculture

Tanzania Mining

The activity increased by 7.3% in the second quarter of 2021 compared to a strong growth rate of 8.7% recorded during the similar quarter of 2020.

The growth was attributed to an increase in the production of gold that influenced the overall growth due to its weight in the mining activity.

During Q2 2021, gold production increased to 15,359.3 kg in the second quarter in 2021 from 14,512.43 kg in the corresponding quarter of 2020.

Tanzania Second Quarter Minerals Production, 2016 – 2021
Source: Ministry of Minerals

Tanzania Electricity

During the quarter under review, total electricity distributed increased to 1,764 million kWh from 1,589 million kWh distributed in the similar quarter of 2020.

The activity recorded a strong growth rate of 12.1% compared to 3.3 percent in the similar quarter of 2020.

Tanzania Information and Communication

The activity recorded a growth rate of 12.3% in the second quarter of 2021 compared to 9.9% in the corresponding quarter of 2020.

The growth rate was attributed to a number of factors including an increase in the number of mobile money subscribers and expansion of broadcasting and internet services in the country in general.

Tanzania Second Quarter Volume Indicators for Information and Communication, 2017 – 2021
Source: Tanzania Communication Regulatory Authority (TCRA)