Tanzania GDP Grew 6.8% in Q3 2017

Tanzania GDP Q3 2017

The National Bureau of Statistics of Tanzania (NBS) recently released its Highlights for The Third Quarter (July – September) Gross Domestic Product (GDP) of 2017, indicating that the economy expanded by +6.8%.

At 2007 constant prices, during Q3 2017 Tanzania’s GDP increased in absolute terms to TZS 12.4 trillion from TZS 11.6 trillion recorded in the corresponding quarter of 2016.

Growth by Economic Activity
During the period under review, economic activities that increased at significant rates were mining and quarrying (+20.8%); Water Supply (+19.1%); Information and Communication (+13.4%), Transport and Storage (+13.0%), Manufacturing (+12.4%), and Construction (+11.1%).

The added value of Mining and Quarrying activity increased to TZS 489.4 billion in the third quarter of 2017 from TZS 405.0 billion in the corresponding quarter of 2016.

The growth was attributed to an increase in gas production, diamond, and coal. Gas production increased to meet the demand of gas for power generation which has gas consumption of up to 13 million cubic feet per day while the new established ceramic factory consumes 4 million cubic feet per day.

Diamond production increased on account of mining operation done on areas of high mineral concentration as well as the use of high-quality processing plant.

Coal production increased in the quarter under review on account of the government ban on coal imports.

In Q3 2017, the quantity of water supplied increased to 82.3 million cubic meters from 67.4 million cubic meters recorded in Q3 2016.

The added value activity increased to TZS 98.8 billion from TZS 82.9 billion, due to an increased in supplied water by water authorities on account of improved water supply infrastructure.

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The value-added activity of Information and Communication increased to TZS 676.8 billion from TZS 597.0 billion, on account of airtime used by mobile phone customers and the expansion of broadcasting and internet services in the country.

The value-added activity of Manufacturing increased to TZS 962.6 billion from TZS 856.1 billion mainly thanks to an increased production of food products specifically wheat flour; cement; textile; wood and paper; chemical and pharmaceuticals; and electrical, transport and machinery products.

The value-added activity of Construction increased to TZS 1.52 trillion from TZS 1.37 trillion, due to ongoing infrastructure projects such as the Standard Gauge Rail (SGR), TAZARA Flyover and Ubungo interchange in Dar es Salaam as well as Manyoni – Tabora road and Mtwara – Mvinata road.

In accordance with GDP the release calendar, the Q4 2017 release is expected by March 2018.