GDP of Tanzania | Historical Growth & Country Comparison

Gross Domestic Product (GDP) is an essential indicator that measures the economic activity and health of a country by quantifying the total value of all goods and services produced over a specific period. This page explores Tanzania’s GDP, detailing its growth trends, sectoral contributions, and comparison with other economies in the region. Understanding the dynamics of Tanzania’s GDP is crucial for assessing its economic stability and potential for future growth.


GDP of Tanzania Over Time

Tanzania’s GDP has shown significant growth over the last decade, driven by robust government investments in natural resource exploitation and infrastructure development. The country has also seen considerable improvements in sectors such as tourism, mining, and telecommunications. The graph below illustrates the steady upward trajectory of Tanzania’s GDP, highlighting the key factors contributing to economic expansion.

Tanzania GDP Over Time


Components of Tanzania’s GDP

The Tanzanian economy is diverse, with multiple sectors contributing to its GDP:

  • Agriculture: Remains the backbone of the economy, employing the majority of the population and contributing a significant portion of GDP through the export of cash crops like coffee, tea, and tobacco.
  • Mining: Rich deposits of minerals like gold and tanzanite have made mining an important growth sector, contributing substantially to export earnings.
  • Tourism: Boasting world-renowned attractions such as the Serengeti National Park and Zanzibar, tourism significantly boosts the economy by attracting foreign exchange.
  • Manufacturing: While still developing, the manufacturing sector is gradually expanding, focusing on processing agricultural products and light consumer goods.
  • Construction: The construction sector has experienced rapid growth due to ongoing infrastructure projects and real estate development.

These sectors collectively support the growth and diversification of Tanzania’s economy, enhancing its resilience against global economic shocks.


Comparison of Tanzania’s GDP with Other African Countries

Tanzania is among the fastest-growing economies in East Africa. Its strategic reforms and investment in key sectors have positioned it favorably in comparison to other African countries. The following graph shows Tanzania’s GDP compared to its regional peers, highlighting its relative economic strength and growth potential.

GDP Comparison with African Countries


Real GDP vs. Nominal GDP in Tanzania

In Tanzania, understanding the difference between nominal and real GDP is essential, particularly due to fluctuating inflation rates. Nominal GDP measures the country’s economic output at current prices, which can be influenced by price changes, whereas real GDP adjusts for inflation, providing a more accurate reflection of true economic growth. This distinction helps policymakers and analysts assess the actual progress of the economy, enabling better strategic decisions.


GDP Per Capita in Tanzania

GDP per capita is a crucial measure that provides insight into the average economic output per person and is often regarded as an indicator of the standard of living. In Tanzania, while GDP growth has been strong, GDP per capita growth has been moderate, indicating that the benefits of economic expansion are not evenly distributed across the population. This metric is vital for highlighting the need for more inclusive economic policies that ensure broader prosperity and reduce poverty.


Future Projections: Tanzania’s GDP Growth

The outlook for Tanzania’s GDP growth remains positive, with continued investment in key sectors expected to drive further economic expansion. The government’s focus on enhancing infrastructure, developing the energy sector, and promoting industrialization is anticipated to sustain growth momentum and attract more foreign investment.


Challenges Affecting Tanzania’s GDP Growth

Despite its promising growth prospects, Tanzania faces several challenges:

  • Infrastructure Deficits: While improvements have been made, ongoing infrastructure development is necessary to support economic activities and connectivity.
  • Skill Gaps: Bridging the skill gap in the workforce is crucial for maximizing productivity and supporting industrial growth.
  • Rural Poverty: High levels of poverty in rural areas remain a concern, necessitating targeted developmental policies to improve living conditions and economic opportunities.

Effectively addressing these challenges is essential for ensuring sustainable economic growth and equitable development across Tanzania.



As Tanzania continues to advance on its path of economic growth, a comprehensive understanding of its GDP and the various economic sectors is indispensable. By tackling its developmental challenges and leveraging its economic opportunities, Tanzania can achieve sustained prosperity and improve the well-being of all its citizens.


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