Tanzania Economic Forecast

In rating world economies, Tanzania rates within the bottom 10% for per capita income. Currently, 40% of the country’s GDP is from a heavy dependency on agriculture, fisheries, and farming, which accounts for as much as 85% of exports. In addition, of people working, these sectors provide 80% of jobs. Even so, harvested crops are only responsible for 4% of the GDP because of Tanzania’s topography and climate.

In rating world economies, Tanzania rates within the bottom 10% for per capita income. Currently, 40% of the country’s GDP is from a heavy dependency on agriculture, fisheries, and farming, which accounts for as much as 85% of exports. In addition, of people working, these sectors provide 80% of jobs. Even so, harvested crops are only responsible for 4% of the GDP because of Tanzania’s topography and climate.

Even so, the agriculture, fisheries, and farming sectors have long been responsible for supporting the economy, followed by manufactured and light consumer favorable items. To help boost the outdated facilities and infrastructure of Tanzania, the World Bank and International Monetary Fund, along with bilateral donors have played a significant role. With this relationship, the poverty level has also been helped. For years, Tanzania experienced excellent growth, primary from an increase of mineral output, especially gold, as well as industrial production. However, to increase growth in the private sector, reform of financial institutions, banks, and financial services have helped.

Tanzania GDP Forecast

One of the greatest challenges of Tanzania is its strong reliance on agriculture and traditional economic infrastructure. To combat economic challenges, the Poverty Reduction and Growth Facility or PRGF was formed in connection with the International Monetary Fund. In addition, thanks to grants from the Heavily Indebted Poor Countries initiative or HIPC, forecasters are optimistic the economy will begin to see improvement. In 2008, the Tanzania GDP (Gross Domestic Product, Current Prices, US Dollars) closed at $20.63 billion in US dollars. Over the following year, an increase of 8.18% occurred, pushing the 2009 numbers to $23.318 billion and putting Tanzania at number 93 for rankings worldwide. Regarding numbers being predicted for 2010’s GDP, experts believe the year will end at $24.48 billion, just a slight change from the prior year. However, for 2015, it is expected a slightly greater change will be seen, putting the GDP at $37.928 billion in US currency.

Tanzania Unemployment Forecast

Unfortunately, Tanzania has one of the world’s poorest economy, with the Tanzania population being at 43.7 million, and of those approximately 36% living below the poverty line. For the Tanzania unemployment rate, more than 22 million people are without work but for the 21.23 million with jobs, the majority work in the agriculture sector, followed by the industry and services sectors.

Tanzania Inflation Rate Forecast

Now, for the Tanzania inflation rate, 2009 closed at 12.144%, a reduction of 35.61% from the prior year that ended at 10.28%. However, to determine the inflation rate for future years, forecasters use an index of 2000=100 specific to average consumer prices. With this, 2010 is expected to be at 7.82% and by 2015, the numbers are being predicted to drop down to 5.027%.

Tanzania Current Account Balance Forecast

The country’s economy is also comprised of the Tanzania current account balance, which uses primary classifications of goods, services, current transfers, and income. For 2008, the account balance was a negative $2.01 billion in US dollars and one year later, at a negative $2.102 billion that ranked the country at number 143. Using the appropriate formula and looking at historical data, forecasters can predict future numbers to see how one country is fairing to another country. With this, it is expected that 2010 will end with an account balance of a negative $1.95 billion whereas 2015 will be around a negative $2.731 billion in US currency.