Tanzania has managed to maintain an impressive average growth rate of 6.5% over the past decade, in part made possible by a better diversified economy. The rebasing of Tanzania’s GDP revealed that reliance on the agriculture sector has declined, while the secondary and tertiary sectors have become more significant, both in terms of their growth rates and contributions to GDP.
While economic growth is likely to be somewhat lower this year than in 2014, the medium term outlook remains constructive: there is on-going investment in gas production and power generation, urban migration is strong and regional trade continues to improve.
As always this view is not without risks. Regional instability, declining donor aid and prospective setbacks in the implementation of growth promoting policies are all important factors that could curtail growth in time to come.