Tanzania GDP Record 7.9% Growth in Q2 2016

Tanzania’s GDP grew at a rate of 7.9% in Q2 2016 reaching TZS11.7tn at constant prices, compared to TZS10.9tn in Q2 2015 with a growth rate of 5.8%.

The results were included in a report recently issued by the Tanzanian National Bureau of Statistics (NBS), covering the country’s GDP performances Q2 2016 GDP.

NBS notes that in Q2 2016, the transport sector recorded the highest growth rate of 30.6% followed by mining (20.5%), and information and communication (12.6%).

Tanzania’s transport sector grew at a rate of 30.6% in Q2 2016 reaching TZS743b, compared to TZS569b in Q2 2015 with a growth rate of 9.4%.

The growth was attributed to a rise in the number of passengers and cargo transported by road and rail, as well as increased transportation of natural gas via pipelines.

Tanzania’s mining sector grew at a rate of 20.5% in Q2 2016 reaching TZS434b, compared to TZS361b in Q2 2015 with a growth rate of 11.2%.

NBS attributes the growth to an increase in the production of diamonds, Tanzanite, salt, natural gas, gold, copper and silver production.

Tanzania’s information and communication sector growth rate reached 12.6% in Q2 2016, amounting to TZS591b, compared to 525b in Q2 2015 with a growth rate of 11.8%.

The growth was attributed to increase in airtime used by mobile phone customers and the expansion of television and radio broadcasting and internet services in the country.

Tanzania’s construction sector grew at a rate of 9% in Q2 2016 reaching TZS1.3tn, compared to TZS1.2tn in Q2 2015 with a growth rate of 13.2%.

NBS attributes the slower growth rate in Q2 2016 to a slow kick start of some investments during the period.

Tanzania’s electricity sector recorded a growth rate of 7.1% in Q2 2016 thanks to an increase in the quantity of power generated from gas.

Electricity generated from gas rose by 67%, from 566m kWh in Q2 2015 to 943m kWh in Q2 2016.

Tanzania GDP

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.

The Bank of Tanzania (BOT) forecasts in its latest State of the Economy report, that in 2016 the country will achieve its goal of 7.2% annual GDP growth thanks to favorable economic activity.