Tanzania among 10 top world fastest growing economies

Tanzania is amongst the world’s 10 fastest-growing economies at the rate of 6.8 percent, reveals the new 2020 African Economic Outlook report. Other five African countries are Rwanda at 8.7 percent, Ethiopia at 7.4 percent, Côte d’Ivoire at 7.4 percent, Ghana at 7.1 percent and Benin at 6.7 percent.

East Africa maintained its lead as the continent’s fastest growing region, predicted with an average growth estimated at 5.0 percent in 2019; North Africa was the second fastest, at 4.1 percent, while West Africa’s growth rose to 3.7 percent in 2019, up from 3.4 percent the year before. 

The report highlights that Tanzania’s growth is projected to be broadly stable at 6.4 percent in 2020 and 6.6 percent in 2021, subject to favourable weather, prudent fiscal management, mitigation of financial sector vulnerabilities, and implementation of reforms to improve the business environment. 

Overall, Africa’s economic growth stabilised at 3.4 percent in 2019 and is expected to pick up to 3.9 percent in 2020, and 4.1 percent in 2021, but to remain below historical highs. 

A markedly diversified economy, characterised by robust private consumption, substantial public spending, strong investment growth, and an upturn in exports, underpinned the positive outlook. 

The report prepared by the African Development Bank (AfDB) further observes that tourism, mining, services, construction, agriculture, and manufacturing are notable sectors in the country.