The World Bank (WB) has recently released its 2021 Tanzania Economic Update (TEU), a biannual report describing the recent evolution of Tanzania’s economy.
The real GDP of Tanzania grew by 5.8% in 2019 reaching USD 55.4 billion versus USD 52.4 billion in 2018.
Tanzania’s annual GDP growth rate of 6.3% over the past 10 years (2010-2019) placed the country among the 20 fastest growing economies in the world, beating the Sub-Saharan Africa average GDP growth rate of 3.5% during the same period.
However, the GDP growth rate has been slowing down in recent years, from a peak of 7.7% in 2011 to 5.8% in 2019.
Tanzania is currently pursuing its National Five Year Development Plan 2016/17-2020/21 which includes among the objectives an annual real GDP growth of 10% by 2021. However, given the slowing down of the economy and the impact of the Covid-19 pandemic, this objective is highly unrealistic.
Tanzanian GDP in 2020 and 2021
The World Bank (WB) expects the GDP growth of Tanzania to slow to 2.5% in 2020 due to the Covid-19 pandemic which has affected the labor market, production capacity, and productivity, and tourism sector.
However, the African Development Bank (AfDB) projected Tanzania’s GDP growth to remain stable at 6.4% in 2020 and 6.6% in 2021, subject to favorable weather, prudent fiscal management, mitigation of financial sector vulnerabilities, and implementation of reforms to improve the business environment.
Similarly, the Bank of Tanzania (BoT) estimated the country’s GDP to be 5.5% in 2020 on the basis of the domestic and external economic environment, and economic recovery in 2021 is projected to be more gradual than anticipated.
Tanzania Gross National Income (GNI)
The World Bank (WB) classifies Tanzania as a lower middle-income economy with a GNI per capita of USD 1,080 in 2019, against an average of USD 1,550 in Sub-Saharan Africa.
GNI per capita in Tanzania rose by 6.1% during the ten-year period 2010–2019, from USD 720 to USD 1,080.
Last Updated: 1st February 2021
Sources: African Development Bank (AfDB), Bank of Tanzania (BoT), International Monetary Fund (IMF), Tanzania National Bureau of Statistics, World Bank (WB).
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