Tanzania’s GDP grows 5.4 pct in Q1 of 2022

Tanzania’s Gross Domestic Product (GDP) increased from 33.1trn/- in Q4, 2021 to 34.9trn/- this year equivalent to a 5.4 per cent growth according to a new report by the National Bureau of Statistics (NBS).

All economic activities undertaken in the economy during the period of January to March 2022 accounted for the overall growth of 5.4 per cent compared to a growth of 5.0 per cent attained during a similar period last year.

“Economic activities that significantly contributed to the growth include: Agriculture (19.6 per cent), Construction (14.1 per cent), Manufacturing (9.0 per cent), Construction (14.1 per cent), Manufacturing (9.0 per cent); Mining and Quarrying (7.1 per cent); Trade and Repair (6.7 per cent); and Finance and Insurance (6.4 per cent,” the report said.

According to the report, primary activities accounted for 39.5 per cent to the GDP being the largest share followed by tertiary activities by 38.2 per cent and Secondary activities, which had the least share of 22.3 per cent.

“Shares to GDP were derived before adjustment for taxes,” the report said.

During the period of January to March 2022, Water Supply and Sewerage Services attained the highest growth rate of 11.9 per cent followed by Finance and Insurance at 10.0 per cent.

The report however showed that countries in the East African Community (EAC) during the first quarter 2022 showed continuous economic recovery.

“Rwanda’s economy expanded to 7.9 per cent in 2022 up from 3.5 per cent in 2021, Uganda’s economy expanded to 5.9 per cent in 2022 up from 3.0 per cent in 2021 and Kenya’s economy increased to 6.8 per cent up from 2.7 per cent in 2021,” the report noted.

Tanzania mid this year revised its Real Gross Domestic Product growth rate for 2022 to 4.7 percent as the ongoing tension in Ukraine weighs in on the ongoing economic recovery.

The projection was lower than earlier estimates of 5.5 percent.