The World Bank has predicted that the economy of Tanzania will grow by up to 5.5% in 2022 as the country continues to recover from the effects of the COVID19 pandemic. This was contained in the Tanzania Economic Update released on Tuesday which projects that Tanzania’s GDP to expand by between 4.5% and 5.5% this year.
According to the World Bank Country Director in Tanzania, Dr Mara Warwick, the growth is dependent on the improvement of external developments, domestic health policies as well as continued support to the private sector. Tanzania is East Africa’s third-largest economy after Kenya and Ethiopia, the economic growth rate in 2021 reached 4.3%, more than double what it was during the 2020 lockdown period. The World Bank believes that indicators such as non-fuel imports, export of goods and services, tourist arrivals, cement production, private sector credit – among others, all improved in 2021.
“High-frequency data suggest that economic activity in Tanzania is gradually recovering. The accommodation and restaurants, mining, and electricity sectors drove a sharp rebound in quarterly GDP during the Third Quarter of 2021,” she said.
The Director also added that although he said that Tanzania’s economic outlook has moderated, the recovery continues to hinge on external developments and domestic health policies, as well as continued support to the private sector. “An accelerated domestic vaccination program, increased regional trade and cooperation, and policy reforms designed to improve the business environment and support the growth of the private sector have somewhat mitigated downside risks, but the emergence of new coronavirus variants, reduced capital flows, elevated debt levels, persistent inflationary pressures, and supply bottlenecks continue to threaten the projected recovery,”
In the same vein, the World Bank estimates that Tanzania’s national poverty rate reduced marginally, going to 27.0% from 27.1% a year ago; and believes that continued investment in women will further drive the poverty down.