In-Depth Analysis
Tanzania
Tanzania has sustained relatively high economic growth over the past decade but downside risks include erratic economic policies, below-potential FDI inflows, and poor fiscal policy implementation. Tanzania adopted a relaxed approach to Covid-19 as President Magufuli downplayed the severity of the outbreak, but the economy has suffered due to supply-chain disruptions and a slump in tourism.
Overview: While questionable, the economy grew by 4.8% in 2020 – 2.2 ppts lower than the 7.0% recorded in 2019. President Samia Suluhu Hassan appears to be steering the economy in the right direction: she has taken a more proactive approach in preventing the spread of Covid-19 and has pushed for the revival of several development projects. We forecast the economy to expand by 4.4% this year, driven by the construction, manufacturing, trade, and transport sectors. (Source: Tanzania Quarterly Update, published July 2021)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
-1.5 |
|
Consumer Price Index (% change y-o-y, avg) |
3.3 |
|
Current Account Balance (as a % of GDP) |
-1.5 |
|
Real GDP (annual % change) |
4.8 |
|
GDP per Capita, US$ |
1,102.2 |
|
Import Cover (months) |
6.27 |
|
Population, million |
59.7 |
| Total External Debt (as a % of GDP) |
36.5 |