Tanzania Investment and Consultant Group Ltd

| Economic Research Centre

Projected Macroeconomic Growth and Trade Deficits in East African Countries by 2031
August 8, 2024  
By 2031, East African countries, including Tanzania, Kenya, Uganda, Rwanda, and Ethiopia, are projected to experience significant economic growth, with varied GDP estimates. However, all these countries are expected to face trade deficits, where imports exceed exports. Addressing these imbalances will require comprehensive economic policies focusing on boosting exports, reducing unnecessary imports, and improving the […]

By 2031, East African countries, including Tanzania, Kenya, Uganda, Rwanda, and Ethiopia, are projected to experience significant economic growth, with varied GDP estimates. However, all these countries are expected to face trade deficits, where imports exceed exports. Addressing these imbalances will require comprehensive economic policies focusing on boosting exports, reducing unnecessary imports, and improving the overall trade balance for sustainable economic growth.

Tanzania

  • GDP Estimate: $104.47 billion
  • Exports: $13.48 billion
  • Imports: $21.26 billion

Tanzania’s economy is expected to grow significantly by 2031, with a GDP estimate of $104.47 billion. The country's exports are projected to reach $13.48 billion, while imports are estimated at $21.26 billion. This suggests a trade deficit, which may require strategic economic policies to balance.

Kenya

  • GDP Estimate: $148.51 billion
  • Exports: $17.36 billion
  • Imports: $36.17 billion

Kenya is projected to have a GDP of $148.51 billion by 2031. The country’s exports are expected to be $17.36 billion, whereas imports will be significantly higher at $36.17 billion. This indicates a considerable trade deficit, reflecting the need for policies to boost exports or control imports.

Uganda

  • GDP Estimate: $62.73 billion
  • Exports: $8.04 billion
  • Imports: $15.73 billion

Uganda’s GDP is estimated to be $62.73 billion by 2031. The exports are projected to be $8.04 billion, while imports are estimated at $15.73 billion. This also shows a trade deficit, highlighting the importance of economic strategies to improve the trade balance.

Rwanda

  • GDP Estimate: $18.96 billion
  • Exports: $2.20 billion
  • Imports: $4.00 billion

Rwanda’s economy is expected to have a GDP of $18.96 billion by 2031. Exports are projected at $2.20 billion and imports at $4.00 billion. This smaller economy also faces a trade deficit but on a smaller scale compared to other East African countries.

Ethiopia

  • GDP Estimate: $176.27 billion
  • Exports: $11.24 billion
  • Imports: $47.30 billion

Ethiopia’s GDP is projected to be the highest among these East African countries, at $176.27 billion by 2031. However, the country’s exports are estimated at $11.24 billion, and imports at $47.30 billion, indicating a substantial trade deficit. This large gap underscores the need for policies to either increase exports or reduce reliance on imports.

Rest of East Africa

  • GDP Estimate: $86.14 billion
  • Exports: $9.29 billion
  • Imports: $14.59 billion

The remaining East African countries collectively are projected to have a GDP of $86.14 billion by 2031. Their exports are expected to be $9.29 billion, while imports are estimated at $14.59 billion. This group also faces a trade deficit, suggesting regional economic policies might be necessary to address these imbalances.

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