Economy of Tanzania
The economy of Tanzania is a lower-middle income economy that is overwhelmingly dependent on agriculture. Tanzania's economy has been transitioning from a planned economy to a market economy since 1985. Although total GDP has increased since these reforms began, GDP per capita dropped sharply at first, and only exceeded the pre-transition figure in around 2007.
Dar es Salaam, the financial centre of Tanzania | |
| Currency | Tanzanian shilling (TSh) |
|---|---|
| 1 July – 30 June | |
Trade organisations | AU, AfCFTA (signed), EAC, SADC, WTO |
Country group |
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| Statistics | |
| Population | 61,741,120 (2022) |
| GDP |
|
| GDP rank |
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GDP growth |
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GDP per capita |
|
GDP per capita rank |
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GDP by sector |
|
| 3.9% (2020 est.) | |
| 12% (2014) | |
Population below poverty line |
|
| 40.5 medium (2017) | |
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Labour force |
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Labour force by occupation | Agriculture: 50%: page 56 |
| Unemployment | 2.2% (2017) |
Main industries | agricultural processing (sugar, beer, cigarettes, sisal twine); mining (diamonds, gold, and iron), salt, soda ash; cement, oil refining, shoes, apparel, wood products, fertilizer |
| External | |
| Exports | $5.6685 billion (105th; October 2015) |
Export goods | gold, tobacco, cashews, sesame seeds, refined petroleum |
Main export partners | India 20% United Arab Emirates 13% China 8% Switzerland 7% Rwanda 6% Kenya 5% Vietnam 5% (2019) |
| Imports | $10.441 billion (FOB; October 2015) |
Import goods | refined petroleum, palm oil, packaged medicines, cars, wheat |
Main import partners | China 34% India 15% United Arab Emirates 12% (2019) |
FDI stock | $12.715 billion (2013) |
| –4.002 billion (October 2015) | |
Gross external debt | $15.4 billion (October 2015) |
| Public finances | |
Government debt | 37% of GDP (2017 est.) |
| –1.8% (of GDP) (2017 est.) | |
| Revenues | $12.88 billion (2022 est.) |
| Expenses | $14.91 billion (2022 est.) |
| Economic aid | $490 million (recipient; 2014) |
Credit rating | n/a (TBD) |
| $4,383.6 million (4.5 months of imports; 2013) | |
Following the rebasing of the economy in 2014, the GDP increased by a third to $41.33 billion.
In 2020, the real GDP of Tanzania grew by 4.8% reaching US$64.4 billion versus US$60.8 billion in 2019. This growth made it the 2nd largest economy in East Africa after Kenya, and the 7th largest in Sub-Saharan Africa.
It has sustained relatively high economic growth compared to global trends, as is characteristic of African nations. According to World Bank data, the last 5 years have seen the slowest growth since 2000. The medium-term outlook is so far positive, with growth projected at 6 percent in 2020/21, which is supported by large infrastructure spending.
The World Bank (WB) expects the economic growth of Tanzania to slow to 2.5% in 2020 due to the COVID-19 pandemic which has affected the labor market, the production capacity, and productivity. Tourism has halted, and exports of manufacturing and agricultural goods slumped.
On 7 September 2021, the IMF approved US$567.25 million in emergency financial assistance to support Tanzania’s efforts in responding to the COVID-19 pandemic by addressing the urgent health, humanitarian, and economic costs.
The IMF projects a GDP growth for Tanzania of +4.0% and +5.1% in 2021 and 2022, and 6.0% in 2026.
According to the World Bank, the GDP of Tanzania expanded by 4.6% in 2022, up from 4.3% in 2021.
The value of Tanzania's GDP at current prices reached USD 75.5 billion in 2022.
The World Bank projects Tanzania's GDP growth to reach 5.1% in 2023.