In-Depth Analysis
Tanzania
Tanzania has good prospects for economic growth, import cover levels are comfortable, and political risk is relatively low. However, these strengths are offset by weak socioeconomic indicators, structurally large current account and budget deficits, and rising debt levels. Another problem is that protectionist policies may begin to affect investment into the mining and energy sectors.
Political risk has deteriorated somewhat in Tanzania due to indications of a weakening in government legitimacy over the past quarter. Polling indicates that President John Magufuli’s approval rating has deteriorated significantly, while the political environment remains characterised by the repression of free expression, the regular arresting of senior members of the opposition and a ban on political rallies. Meanwhile, economic growth is expected to ease slightly this year but to remain strong, with the industrial sector remaining the primary driver behind Tanzania’s commendable GDP growth performance. (Source: Tanzania Annual Country Profile, published October 2018)
Macroeconomic Data
(2017)
|
Fiscal Balance (as a % of GDP) |
-1.8 |
|
Consumer Price Index (% change y-o-y, avg) |
5.3x |
|
Current Account Balance (as a % of GDP) |
-3.3 |
|
Real GDP (annual % change) |
7.1 |
|
GDP per Capita, US$ |
906.9 |
|
Import Cover (months) |
7.4 |
|
Population, million |
57.4 |
| Total External Debt (as a % of GDP) |
36.6 |