Key economic indicators of Tanzania - statistics & facts
Tanzania’s economy increased by roughly five percent in 2021. For 2022, the country’s GDP is expected to keep stable. Still recovering from the impacts of the COVID-19 pandemic, the Tanzanian economy’s performance remains below the pre-coronavirus level. Additionally, the country felt the hit of the Russia-Ukraine war and has been experiencing a soar in consumer prices. The annual inflation rate might reach 4.4 percent in 2022, the highest since 2017.
Drivers of growth
Tanzania’s economic development has been driven by a potential mining sector, and strong agricultural activities. Rich in mineral resources, the country exported gold valued at more than 2.7 billion U.S. dollars between April 2021 and 2022. Gold is certainly the most lucrative Tanzanian export item, while traditional exports, such as coffee, tea, sisal, and cashew nuts generated over 700 million U.S. dollars in the same period. Also, Tanzania is home to rich nature and wildlife, which attracts tourists, boosting the country’s services industry. In April 2022, tourims receipts from the previous 12 months accumulated to 1.5 billion U.S. dollars, strongly recovering compared to previous year when the travel sector felt the drastically the hit of the COVID-19 pandemic.
Agriculture as economic backbone
Agriculture contributes to roughly 30 percent of Tanzania’s GDP, sustaining the livelihood of most Tanzanians. Nearly eight million households are involved with agricultural activities in the country, which makes up 65 percent of all households. Moreover, agriculture is the main source of employment: for every 10 Tanzanians, six worked in agricultural activities in 2020. However, this dynamic is slowly changing. For instance, in 2010, 70 percent of the Tanzanian workforce was involved with agriculture. Furthermore, while agricultural employment rates continuously fall, the share of the labor force absorbed by the manufacturing and service jobs gradually increases, a trend that suggests the economy is undergoing a transformation.
Still in need of inclusive development
Notwithstanding the macroeconomic stability, Tanzania still faces social inequality. In 2020, the poverty rate in the country was estimated at some 25 percent. Nearly 10 percent of the country’s population lacked sufficient food for consumption as of May 2022. Lastly, one-third of Tanzanian workers lived on less than 1.9 U.S. dollars per day, highlighting the country’s challenge to promote more inclusive economic growth.
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