In-Depth Analysis
Tanzania
Tanzania has sustained relatively high economic growth over the past decade and continues to show good prospects. Downside risks to the economic outlook include erratic economic policies, below potential FDI inflows, reliance on donor funding for public infrastructure development, and the government’s inability to manage fiscal finances effectively. Moreover, political risks are expected to heighten amid elections this year.
Unlike many African countries which have opted to cut interest rates and enforce curfews or lockdown measures to mitigate the economic impact of Covid-19, Tanzanian authorities have adopted a much lighter approach. To date, authorities have encouraged improved hygiene practices, instituted stricter border control measures, enforced social distancing through stay-at-home and work-from-home policies, adopted travel bans to and from Zanzibar, formulated plans to shut down tourist hotels, and suspended all international flights. Nevertheless, government and private enterprises continue to operate as usual. Compared to our previous forecast for a 6.3% expansion, we now expect real GDP to contract by 2.4% in 2020. This comes as we expect softer household consumption, a fall in investment, and a drop in net exports. (Source: Tanzania Quarterly Update, published April 2020)
Macroeconomic Data
(2019)
|
Fiscal Balance (as a % of GDP) |
-2.4 |
|
Consumer Price Index (% change y-o-y, avg) |
3.5 |
|
Current Account Balance (as a % of GDP) |
-2.5 |
|
Real GDP (annual % change) |
6.7 |
|
GDP per Capita, US$ |
1,042.9 |
|
Import Cover (months) |
6.2 |
|
Population, million |
58.0 |
| Total External Debt (as a % of GDP) |
32.1 |