The National Bureau of Statistics (NBS) reports in its quarterly economic highlights for the quarter ended December 2021thatat 2015 constant prices, the economy expanded to 135.44trn/- last year from 129.09trn/- in 2020, representing a 4.8 percent gain.
NBS data further indicate that during all quarters of last year, GDP growth levels stood at 4.9pct, 4.5pct, 5.2pct and 4.9 per cent respectively, while at current market prices,the economy expanded to 157.74trn/- in 2021 from 148.5trn/- in 2020, making gross national product growth come to 6.2 percent.
The figure is not far from the outlook given by Professor Florens Luoga, governor of the Bank of Tanzania, who highlightedthe country's economicgrowth asprojected at 5 percent in 2021/22 during the conference of financial institutions in Dodoma, back in November.
NBS showed thatTanzania’s economy expanded by 4.9 percent during Q4 of 2021, up from 4.8 percent recorded in fourth quarterof 2020.
Economic activities that significantly contributed to growth in the quarter include agriculture (23.2 percent), construction (12.5 percent), trade and repairs (9 percent), manufacturing (8.4 percent), mining and quarrying (6.4 percent), public administration and defense (5.8 percent), along with and finance and insurance (5.6).
The report shows that all major economic indicators including inflation, exports, foreign currency reserves and debtscontinue to remain in line withfiscal and monetary targets.
These results are being reported while President Samia Suluhu Hassan is conducting foreign trips to restore the country’s investment image, which took a sharp turn over the past half-decade.
President Samia, who was in the past week in United States where she inaugurated ‘The Royal Tour’ travel documentary, was also signing a number of deals involving multi-billion dollar investments.
Prior to the US trip, President visited neighbouring countries, toured Europe and attended an international trade exhibition in Dubai where she signed a multi-billion dollar investment packagethat involves scores of state owned and private firms.
The president’s foreign trips have not only proved crucial in promoting tourism but also helped the country clinch significant bilateral and economic agreements, analysts say, affirming that flagship infrastructure projects in transport and energy will stimulate growth, create jobs and reduce poverty.
The projects include construction of the Dar es Salaam-Mwanza standard gauge railway (SGR), the 2,115 megawatts Julius Nyerere hydropower project and recapitalization of Air Tanzania (ATCL).
Since taking office last year, President Samia has demonstrated a firm commitment to take Tanzania to the next level, bringing the country more a more active role in the global economy.
The president’s vision is well demonstrated in a number of measures taken to improve the business environment and regulatory policies.
In a recent report, the Africa Development Bank (AfDB) said real GDP growth is projected for 4.1 percent growth in 2021 and 5.8 percent in 2022, with improved performance of the tourism sector and the reopening of trade corridors.
In July 2020, the country briefly graduated from low-income country to lowermiddleincome country status, which was lost at the end of 2021 in view of slower growth amid higher population levels.
On its part, the World Bank estimates real GDP growth rate of 4.3 percent and GDP per capita growth rate of 1.3 percent for 2021, following a 1.0 percent per capita GDP contraction in 2020.
At the same time the national poverty rate is estimated to have declined marginally from 27.1 percent in 2020 to 27.0 percent in 2021, driven by the recovery of employment and nonfarm business revenue, on the basis of World Bank data.
Its latest report indicates that Tanzania’s economic growth will strengthen over the next two years, assuming pandemic conditions ease and the external environment improves.
The GDP growth rate is projected to reach 4.5 to 5.5 percent in 2022 and average about 6 percent over the medium term, as exports and domestic demand recover, it says.
Similarly, data from the International Monetary Fund (IMF) sets real GDP growth at 4.8 percent in 2020 with $64.4bn output, projected to grow by 4.0 percent and 5.1 percent in 2021 and 2022, reaching 6.0 percent in 2026.
in its recently country brief, theeconomic intelligence unit of the UK weekly, ‘The Economist,’ said that economic growth (of Tanzania) in 2022-26 will remain brisk and broad-based, with services and industry being core drivers
FocusEconomics, a think tank based in the Spanish city of Barcelona, said the Tanzanian economy will grow at a brisker pace this year, as domestic demand will strengthendue to implementation of large infrastructure projects, bolstering employment levels and spending in turn.
Elevated debt stocks, weather-related shocks and supply disruptions feature as risks to the economic outlook, with FocusEconomics panelists forecasting GDP to expand at 5.5 percent in 2022, up 0.1 percentage point from the latest monthly forecast, and 6.0 percent in 2023.