Construction boom drives GDP growth

15Feb 2019
The Guardian Reporter
DAR ES SALAAM
The Guardian
Construction boom drives GDP growth

Construction maintained its number one position in the list of sectors which contribute immensely to the growth of the gross domestic product (GDP).

Construction work of the multi-trillion shillings Standard Gauge Railways going on in Dar es Salaam. File photo.

Bank of Tanzania Monetary Policy Statement for the first half of 2018/19 show that four sectors namely construction, trade and repair, agriculture and manufacturing were the top GDP contributors.

 

These were the only economic sectors whose contribution to GD exceeded 10 per cent, according to BoT statistics. In the same period in the preceding year construction, transport and storage, mining and quarrying, agriculture as well as information and communication, topped the list of sectors whose contribution to GDP exceeded 10 per cent.

 

Generally, BoT reported that Tanzania’s economy continued to record strong performance, with real GDP growing by 6.7 per cent in the first three quarters of 2018, compared with 6.2 per cent recorded in the corresponding period of 2017.

 

According to BoT, the highest growth rate in the first three quarters of 2018 were recorded in construction (13.0 per cent); information and communication (12.5 per cent); manufacturing (9.0 per cent); and mining and quarrying (9.0 per cent).

 

“Growth in construction was mainly due to the ongoing construction of railway, roads, bridges and buildings,” said BoT. 

 

In the first half of the current financial year construction contributed 23.1 per cent to the GDP followed by trade and repair at 11.1 per cent. Agriculture and manufacturing contributed 10.7 and 10 per cent respectively, BoT reported.

 

On the other hand, electricity, water, Financial Intermediation Services Indirectly Measured (FISIM) as well as professional, scientific and technical services were the least contributors. While the first three contributions were less one per cent each, the last economic activity in fact siphoned from GDP contributing negative 1.1 per cent.

 

On growth of individual economic activities, construction as well as information and communication posted impressive growth of 13 and 12.5 per cent respectively.

 

Manufacturing grew by nine per cent followed by mining and quarrying also at nine per cent with trade and repair recording a 7.4 per cent growth.

 

On the other hand, FISIM recorded negative 0.5 per cent growth alongside professional, scientific and technical services which recorded negative 4.7 per cent growth.

 

Last year mining and quarrying, information and communication, construction, transport and storage as well as water posted growth of more than 10 percentage points.

 

 

Top Stories