WORLD BANK ENVISAGES 5.5PC GROWTH FOR TANZANIA

World Bank Country director for Tanzania Dr Mara Warwick.

Dar es Salaam - The World Bank is projecting that Tanzania’s economy will expand between 4.5 percent and 5.5 percent this year.This is almost in line with projections by the Ministry of Finance and Planning which put Tanzania’s economic growth estimates in 2022 at 5.2 percent.

Though the growth projection is better than the 4.3 percent of 2021, it is also lower than the country’s long-run potential growth rate of about 6 percent. In its 17th Tanzania Economic Update - which was released on Tuesday, March 1 – the World Bank attributes the growth rate to a rollback of coronavirus-related restrictions in many countries which was boosting tourism and trade.

The World Bank Country Director for Tanzania, Dr Mara Warwick, said data showed that Tanzania’s economy was recovering from the adverse effects of the global Covid-19 pandemic. “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.”

According to her, leading indicators such as cement production, electricity generation, private-sector credit, goods and services exports, nonfuel goods imports, telecommunications, mobility, and tourist arrivals all improved in 2021, though activity in most sectors remains below pre-pandemic levels.

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