Tanzania’s GDP Grew 5.4% in Q1 2025 with Electricity Growing 19%, Mining 16.6%, and Financial Services 15.4%

According to Bank of Tanzania data released on 13 October, Tanzania’s GDP grew 5.4% in Q1 2025 at 2015 constant prices, driven by electricity with 19% growth, mining 16.6%, and financial services 15.4%. Agriculture expanded 3.0%, while other sectors such as education and transport grew moderately.
TANZANIA GDP GROWTH Q1 2025

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.

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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.

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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

Year2024Q12024Q42025Q1
Agriculture2.54.23.0
Industry and construction
Mining and quarrying3.58.516.6
Manufacturing5.83.97.2
Electricity7.623.919.0
Water3.15.94.2
Construction6.43.34.3
Services
Trade and Repair5.35.43.5
Accommodation & restaurant7.25.72.3
Transport and storage5.71.76.5
Information and communication14.615.17.8
Financial & insurance14.912.115.4
Public admi-nistration5.08.94.1
Professional, Scientific & Technical act.4.55.65.1
Administrative & Support services5.28.33.7
Real estate4.24.34.3
Education5.56.58.6
Health9.011.14.1
Other services8.68.05.0
All indust. at basic prices5.35.55.8
Taxes on products3.74.4-0.1
GDP at market prices5.65.25.4

Source: Bank of Tanzania

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