The United Nations Department of Economic and Social Affairs (UN DESA) recently released its World Economic Situation and Prospects 2024. It forecasts that Tanzania’s real GDP will grow by 5.9% in 2024 and 6.1% in 2025.
This marks a significant increase from the 5% GDP growth in 2023, 4.7% in 2022, 4.9% in 2021, and 4.8% in 2020.
However, it still falls short of the 7% growth experienced in 2019 before the Covid-19 pandemic outbreak.
António Guterres, United Nations Secretary-General, notes in the foreword that while wealthy economies have largely recovered from the COVID-19 pandemic, developing economies are struggling.
Many are facing severe debt issues, with over a third at risk of a crisis. The report indicates that 2024 will be challenging, with slow global growth and weak investment.
Economic Growth in Africa and East Africa in 2024
In Africa, economic growth is expected to be modest, rising from an average of 3.3% in 2023 to 3.5% in 2024.
Factors such as the global economic slowdown, tight monetary and fiscal policies, and high debt risks will hamper growth.
Additionally, the climate crisis and extreme weather will affect agriculture and tourism, while geopolitical instability will impact regions like the Sahel and North Africa.
However, East Africa is projected to outperform other regions, with an expected real GDP growth rate of 5.5% in 2024 and 5.9% in 2025. This makes it the fastest-growing region in Africa, showcasing its resilience.
Within East Africa, the countries projected to grow faster than Tanzania are the Democratic Republic of the Congo (6.4% and 7.7%), Rwanda (7.0% and 7.5%), and Uganda (6.1% and 7.0%).
Senegal, in West Africa, is anticipated to be Africa’s fastest-growing economy in 2024 and 2025, with a GDP growth of 9.2% and 8.1%.
