The largest country in East Africa, which relies heavily on mining, tourism and telecommunications for state revenues and foreign exchange earnings, saw its economy expand by 7.2% in the second quarter of 2019 compared to 6.1% in the same period last year, according to the National Bureau of Statistics (NBS).
"The largest share to GDP in the second quarter of 2019 was from tertiary activities which accounted to 41.5 percent, followed by primary activities by 32.9 percent and secondary activities had the least share of 25.7 percent, before adjustment for taxes," NBS said in the report released on Sunday.
The faster growth of the gross domestic product (GDP) in the April-June 2019 period was due to improved performance of construction, mining and communications sector. During the period under review, construction activity recorded the highest growth of 19.6%, followed by mining and quarrying (17.2%) and information and communication (10.3%),NBS revealed.
Tanzania's economy grew by 6.6% in the first quarter of this year, according to the report.
Tanzania’s 7.2% economic growth pales in comparison to what the International Monetary Fund had forecasted.
Early this year, the IMF in its World Economic Outlook, forecasted Tanzania’s economic growth this year would grow at around 4% and then in 2020 accelerate slightly to 4.2%, from an estimated 6.6% in 2018.
Western financial institutions including the World Bank have in the past differed with President Magufuli’s administration over the correct economic figures and some have even gone as far as accusing Tanzania of cooking up figures.
Irregardless of who’s saying the truth, Tanzania is ripe for growth and key opportunities including peace and political stability, abundant natural resources, a strategic geographic location, and immense development potential for tourism remain to be tapped.