Tanzania’s economy demonstrated robust resilience in 2025, achieving real GDP growth of 5.9%, slightly exceeding initial projections and maintaining the country’s position as one of East Africa’s fastest-growing economies. This performance was driven by strong contributions from agriculture, mining, construction, and tourism sectors, alongside prudent macroeconomic management that kept inflation within target and strengthened external reserves.

Real GDP Growth 2025

5.9%

Mainland Tanzania

Nominal GDP 2025

$87.44B

+10.3% from 2024

Inflation Rate (Q4)

3.5%

Within 3-5% target

2026 GDP Projection

6.1%

Accelerating growth

Looking ahead to 2026, the economy is projected to accelerate to 6.1% growth, underpinned by continued investments in infrastructure (including the $42 billion LNG initiative), mining expansion, tourism recovery, and agricultural modernization. Key strengths include low inflation, improved current account balance, strong foreign reserves, and exceptional private sector credit growth of 20.3%.

Key Highlights for 2025GDP Performance: Mainland Tanzania achieved 5.9% real growth, with Zanzibar posting an impressive 6.8%Sectoral Stars: Mining grew 19%, Tourism expanded 21%, and Finance & Insurance increased 15%Inflation Control: Maintained at 3.5% average, well within the BoT’s 3-5% target rangeExternal Position: Current account deficit narrowed to 2.2% of GDP—a five-year lowCredit Expansion: Private sector credit surged 20.3%, reflecting strong investment appetiteFiscal Discipline: Government debt at 40.6% of GDP (NPV), well below the 55% thresholdForeign Reserves: Exceeded $6.3 billion, covering 4.9 months of imports🎯 2026 Outlook

The economy is positioned for stronger growth in 2026, driven by the commencement of mega infrastructure projects (particularly the $42 billion LNG development), continued mining expansion, tourism recovery momentum, and agricultural productivity improvements. Key risks include global geopolitical tensions, commodity price volatility, and climate-related shocks, though most remain manageable with proactive policy responses.

1.1 Quarterly GDP Growth in 2025

Tanzania’s GDP growth showed an upward trend throughout 2025, with stronger performance in the second half of the year. The acceleration from 5.4% in Q1 to 6.3% in Q2 reflected strengthening economic momentum, particularly in mining and financial services sectors.

QuarterReal GDP Growth (YoY, %)Key DriversGDP at Constant 2015 Prices (TZS Trillion)GDP at Current Prices (TZS Trillion)Q1 (Jan-Mar)5.4%Mining (16.6%), Electricity (19.0%), Finance (15.4%)Not specified54.2Q2 (Apr-Jun)6.3%Mining (19.0%), Finance (14.8%), Electricity (14.0%)40.759.6Q3 (Jul-Sep)>6.0% (estimated)Agriculture, mining, constructionNot availableNot availableQ4 (Oct-Dec)Contributing to 5.9%Tourism, manufacturingNot availableNot availableFull Year 20255.9%Agriculture, mining, construction, tourismNot specifiedNot specified

Sources: National Bureau of Statistics (NBS) Q1 and Q2 reports, Bank of Tanzania (BoT) Monetary Policy Report

Quarterly GDP Growth Trend in 20251.2 GDP Trajectory and Projections (2020-2030)

The data shows consistent post-COVID recovery, with 2025 marking a significant 10.3% jump from 2024, reflecting both real growth and favorable exchange rate dynamics. Tanzania’s nominal GDP is projected to reach $138.58 billion by 2030, more than doubling from the 2020 baseline of $63.37 billion.

YearNominal GDP (Billion USD)StatusAnnual Change (%)2020$63.37Actual—2021$67.96Actual+7.2%2022$74.17Actual+9.1%2023$78.37Actual+5.7%2024$79.24Estimated+1.1%2025$87.44Estimated+10.3%2026$95.35Projected+9.0%2027$104.65Projected+9.8%2028$115.06Projected+9.9%2029$126.39Projected+9.8%2030$138.58Projected+9.6%

Source: Statista, International Monetary Fund (IMF)

Tanzania’s Nominal GDP Evolution & Projections (2020-2030)📈 Growth Analysis

The projected growth trajectory from 2026-2030 reflects Tanzania’s structural transformation driven by: (1) Major infrastructure investments including the $42B LNG project; (2) Mining sector expansion with gold and emerging minerals; (3) Tourism sector recovery and diversification; (4) Agricultural modernization and value addition; (5) Regional integration and improved trade connectivity. This positions Tanzania to potentially become a $140+ billion economy by 2030, cementing its status as a major East African economic hub.

A comprehensive comparison of Tanzania’s core economic metrics reveals consistent strengthening across multiple indicators, with particular improvements in GDP growth, inflation stability, external balance, and credit expansion. The 2026 projections suggest continued positive momentum with accelerating growth and maintained macroeconomic stability.

Indicator2025 (Actual/Estimated)2026 (Projected)Notes/SourcesReal GDP Growth (%)5.9 (Mainland); 6.8 (Zanzibar)6.1 (Mainland); 7.2 (Zanzibar)Driven by agriculture, mining, tourism. BoT, IMFNominal GDP (Billion USD)$87.44$95.35Statista estimatesGDP PPP (Billion USD)$293.63Not specifiedWikipediaGDP per Capita (Nominal USD)$1,300$1,380IMF, +6.2% increaseInflation (Average, %)3.5 (Q4)3.5 (within 3-5% target)Stable due to food stocks, low imported inflation. BoTUnemployment Rate (%)2.2 (older estimate)Not specifiedLimited recent dataCurrent Account Balance (% of GDP)-2.2%-2.7%Narrowed in 2025 due to gold/tourism exports. BoT, IMFGovernment Gross Debt (% of GDP)40.6 (NPV)48.3Declined in 2025; below 55% threshold. BoT, IMFPrivate Sector Credit Growth (%)20.3%Not specifiedStrong expansion in mining and tourism. BoTForeign Reserves (Billion USD)>$6.3 (4.9 months of imports)Not specifiedBoTCentral Bank Rate (%)5.755.75 (maintained)Stable monetary policy stance

Sources: Bank of Tanzania (BoT), International Monetary Fund (IMF), National Bureau of Statistics (NBS), Statista

Key Macroeconomic Indicators Comparison (2025 vs 2026)

GDP per Capita Growth

+6.2%

$1,300 → $1,380

Current Account Deficit

2.2%

Five-year low

Public Debt (NPV)

40.6%

Below 55% threshold

Credit Expansion

20.3%

Strong private sector growth

Macroeconomic StrengthsInflation Stability: Successfully maintained within the 3-5% target range throughout 2025External Balance: Current account deficit at historic low of 2.2%, driven by strong gold exports and tourismFiscal Discipline: Government debt declining and well below the 55% threshold, ensuring sustainabilityMonetary Stability: Central Bank Rate held steady at 5.75%, supporting investment while controlling inflationReserve Adequacy: Foreign reserves covering nearly 5 months of imports, well above international standardsCredit Dynamism: Exceptional 20.3% private sector credit growth signaling strong business confidenceRelated Resources & Analytics