Tanzania’s economy expanded to US$91.81 billion in 2025, supported by stronger macroeconomic performance and a modest acceleration in real GDP growth to 5.9 percent, up from 5.6 percent in 2024, according to revised national accounts data presented to Parliament.
The updated figures, tabled alongside the government’s 2026/27 development framework, reflect a rebasing exercise by the National Bureau of Statistics that shifted the GDP base year from 2015 to 2019, significantly altering the scale and structure of the economy.
Minister of State in the President’s Office for Planning and Investment Kitila Alexander Mkumbo said the revision shows a larger and more diversified economy, with GDP per capita rising from US$1,264 to $1,390.
He told Parliament that the rebasing exercise not only increased the size of the economy from US$81.2 billion in 2024 to US$91.81 billion in 2025 but also provided a clearer picture of sectoral contributions across the economy.
Agriculture remains the dominant sector, accounting for 24.3% of GDP, followed by construction at 11.9 percent, mining and quarrying at 10.3 percent, trade at 8.6 percent, and transport and storage at 8.3 percent.
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The data also shows strong momentum in high-growth sectors, with financial and insurance services expanding by 15.7 percent, electricity and gas by 11.8 percent, mining by 9.4 percent, and information and communication by 8.8 percent, indicating broad-based economic expansion.
“The statistics show that Tanzania is among the fastest growing countries in Africa,” Mkumbo said.
External investment flows also strengthened during the period, with foreign direct investment rising to US$1.72 billion in 2024, up from US$1.34 billion in 2023, according to the UN Conference on Trade and Development (UNCTAD).
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Mining and quarrying attracted the largest share of inflows at US$442.2 million, followed by finance and insurance at US$401.3 million, manufacturing at US$223.1 million, and information and communication at $152.1 million.
Domestic investment activity also accelerated, with the Tanzania Investment and Special Economic Zones Authority registering 915 projects in 2025, valued at US$10.95 billion, compared with 901 projects worth US$9.3 billion in 2024.
The government says these investments span manufacturing, agriculture, tourism, transport and construction, reflecting continued diversification of the economy.
Job creation remains a key policy priority, with authorities targeting 1.7 million new jobs in 2026, as policymakers aim to ensure that economic growth translates into broader employment opportunities.
Inflation remained relatively stable, averaging 3.3 percent in 2025, within the government’s target range of 3 percent to 5 percent, supported by contained price pressures despite fluctuations in food costs.
Poverty levels also continued a gradual decline, with basic needs poverty falling to 25.1 percent in 2025, compared with 26.4 percent in 2018 and 34.4 percent in 2007, reflecting long-term but slow improvements in living standards.
However, officials cautioned that poverty reduction remains slower than overall economic growth, highlighting persistent inequality and the need for more inclusive development policies.
Looking ahead, the government projects GDP growth of 6.3 percent in 2026, supported by stronger investment inflows and revenue mobilisation efforts. Fiscal targets include raising domestic revenue to 17.1 percent of GDP, increasing tax revenue to 13.7 percent, and maintaining the budget deficit below 3 percent of GDP, alongside foreign reserves sufficient to cover at least four months of imports.
Economists say the revised data strengthens Tanzania’s position as one of East Africa’s most consistent growth performers, though sustaining momentum will depend on productivity gains, private-sector expansion and continued infrastructure investment.
