Tanzania Economic Outlook
One of Africa’s fastest-growing economies:
Tanzania has maintained robust economic growth over the past two decades, with GDP expansion averaging 6-7% annually before the COVID-19 pandemic. The economy is largely driven by agriculture, mining, tourism, and infrastructure development. With a population exceeding 60 million, Tanzania is increasingly positioning itself as a key economic player in East Africa.
Natural resources and diversification:The country is endowed with abundant natural resources, including gold, natural gas, and vast arable land. Gold remains Tanzania’s largest export, but the government has made efforts to diversify by promoting manufacturing, renewable energy, and services. The country also has a growing tourism sector, with attractions like Mount Kilimanjaro, Serengeti National Park, and Zanzibar drawing millions of visitors annually.
Infrastructure and industrialization push:The Tanzanian government has prioritized large-scale infrastructure projects, such as the Standard Gauge Railway (SGR) and the expansion of Dar es Salaam Port, to boost regional trade. Efforts to industrialize through special economic zones and agro-processing have gained traction, though challenges remain in terms of investment climate and bureaucratic hurdles.
Challenges and risks:Despite its impressive growth, Tanzania faces structural weaknesses, including high poverty levels, an underdeveloped financial sector, and regulatory uncertainty, particularly concerning foreign investment policies. Access to electricity and quality infrastructure remains a challenge for businesses, while dependence on agriculture makes the economy vulnerable to climate shocks.
Tanzania’s economic outlook:Tanzania’s economic prospects are bright, with the country poised for continued strong growth, supported by public infrastructure investment, a growing middle class, and regional trade opportunities. However, sustaining high growth rates will require improved governance, policy consistency, and efforts to boost private-sector confidence. If reforms are implemented effectively, Tanzania has the potential to become a major industrial and trade hub in East Africa.
Tanzania's Macroeconomic Analysis:
Nominal GDP of USD 78.0 billion in 2023.
Nominal GDP of USD 78.0 billion in 2023.
GDP per capita of USD 1,231 compared to the global average of USD 10,589.
GDP per capita of USD 1,231 compared to the global average of USD 10,589.
Average real GDP growth of 6% over the last decade.
Average real GDP growth of 6% over the last decade.
Sector Analysis
In 2022, services accounted for 28.9% of overall GDP, manufacturing 8.4%, other industrial activity 39.0%, and agriculture 23.7%. Looking at GDP by expenditure, private consumption accounted for 53.8% of GDP in 2023, government consumption 8.1%, fixed investment 40.3%, and net exports -2.2%.International trade
In 2023, manufactured products made up 11.9% of total merchandise exports, mineral fuels 3.6%, food 33.1%, ores and metals 5.0% and agricultural raw materials 3.1%, with other categories accounting for 43.3% of the total. In the same period, manufactured products made up 67.0% of total merchandise imports, mineral fuels 21.6%, food 8.8%, ores and metals 1.4% and agricultural raw materials 1.1%, with other goods accounting for 0.1% of the total. Total exports were worth USD 9.20 billion in 2024, while total imports were USD 14.50 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 6.0% in the decade to 2023. To read more about GDP growth in Tanzania, go to our dedicated page.
Fiscal policy
Tanzania's fiscal deficit averaged 2.8% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 2.5% in the decade to 2023. For more information on Tanzania's unemployment click here.
Inflation
Inflation averaged 4.3% in the decade to 2024. Go to our Tanzania inflation page for extra insight.
Monetary Policy
Tanzania's monetary policy rate ended 2024 at 6.00%, down from 16.00% a decade earlier. See our Tanzania monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the shilling weakened by 29% vs the U.S. dollar. For more info on the shilling, click here.
Economic situation in Tanzania
Annual GDP growth rose to a near four-year high in Q3 on quicker rises in agriculture, industry and services. In Q4, economic momentum likely inched down, though available data is mixed. Credit to the private sector lost steam in Q4, but goods exports growth was the highest in more than seven years. In Q1, our panel sees broadly stable GDP growth. Inflation averaged close to Q4’s level through February, while goods exports accelerated further in January. In other news, Tanzania recently granted China a USD 1.4 billion concession to upgrade the Tanzania–Zambia railway by 2055, which should boost copper exports. Meanwhile, energy sector representatives met in late February to discuss the implementation of a national plan to boost electrification rates by 2030, which should reduce operational risk for business, encourage investment and hasten industrialization. That said, delays are likely.Tanzania Economic Forecasts
Projections out to 2034.44 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 14 expert analysts.
Want to get insight on the economic outlook for Tanzania in the coming years? FocusEconomics collects projections out to 2034 on 44 economic indicators for Tanzania from a panel of 14 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Tanzania economy. To download a sample report on the Tanzania's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.