GDP Growth Overview:

• GDP Growth: Tanzania's GDP at market prices showed growth from TZS 42,631,798 million in June 2022 to TZS 51,181,943 million in December 2023.

The sectoral contributions to Tanzania's GDP

Overall Economic Activity:

• The total economic activity, including all sectors, increased from TZS 39,848,131 million in June 2022 to TZS 47,346,113 million in December 2023.

Percentage Contribution to GDP:

• Agriculture contributed around 27.7% in June 2023.
• Industry and Construction had a significant share, around 29.4% in June 2023.
• Services also had a high contribution, around 36.8% in June 2023.

Tanzania's economy, driven by strong performances in agriculture, industry, and services sectors

Sector Contributions (in Percentage)

Analysis:

• Agriculture, Hunting, and Forestry increased its contribution slightly, from 30.1% to 31.6%.
• Industry and Construction saw a small decline from 32.5% to 29.5%.
• Services grew from 37.4% to 39.0%, remaining the dominant contributor.
• Mining and Quarrying and Manufacturing had marginal increases in their contributions.

Analysis of Tanzania's GDP Economic Development (June 2022 - December 2023)

Tanzania's economic development from June 2022 to December 2023 showcases a diversified economy with strong performances in services and agriculture. The overall growth is a positive sign of economic stability and potential, with ongoing improvements across multiple sectors suggesting a promising future for Tanzania’s economic landscape. The continued expansion of the services sector, in particular, may pave the way for sustained growth and development in the coming years.

1. Overview of GDP Growth

Tanzania's GDP at market prices experienced significant growth from TZS 42,631,798 million in June 2022 to TZS 51,181,943 million in December 2023. This reflects an overall robust economic expansion, driven by various sectors contributing to this upward trajectory.

2. Sectoral Contributions to GDP

The key sectors contributing to Tanzania's GDP show a dynamic yet consistent pattern of development:

• Agriculture, Hunting, and Forestry:
  • Growth: The sector increased from TZS 12,010,526 million in June 2022 to TZS 14,943,066 million in December 2023.
  • Percentage Contribution: This sector's contribution to GDP grew slightly from 30.1% in June 2022 to 31.6% in December 2023.
  • Implication: Agriculture continues to be a foundational pillar of Tanzania’s economy, with a slight but steady increase in its contribution, reflecting improvements in productivity and perhaps favorable market conditions.
• Industry and Construction:
  • Growth: Industry and construction grew from TZS 12,950,909 million in June 2022 to TZS 13,977,368 million in December 2023.
  • Percentage Contribution: Despite the absolute growth, the sector's relative contribution to GDP decreased from 32.5% to 29.5%.
  • Implication: While the sector remains strong, its decreasing percentage contribution suggests either a slower growth rate compared to other sectors or that other sectors are expanding more rapidly.
• Mining and Quarrying:
  • Growth: This sector rose from TZS 3,553,026 million to TZS 4,244,243 million over the period.
  • Percentage Contribution: The contribution slightly increased from 8.9% to 9.0%.
  • Implication: Mining and quarrying remain important but with modest growth, reflecting either stable output or market conditions that limit faster expansion.
• Manufacturing:
  • Growth: Manufacturing expanded from TZS 2,879,571 million to TZS 3,650,506 million.
  • Percentage Contribution: The sector's share in GDP increased slightly from 7.2% to 7.7%.
  • Implication: Manufacturing is on a gradual upward trend, which could indicate ongoing industrialization efforts, but it still contributes a smaller portion compared to other sectors.
• Services:
  • Growth: The services sector experienced significant growth, rising from TZS 14,886,697 million to TZS 18,486,102 million.
  • Percentage Contribution: This sector's contribution increased from 37.4% to 39.0%.
  • Implication: The services sector is the largest and fastest-growing sector, underscoring its role as the main driver of economic activity in Tanzania. This growth could be attributed to expansions in trade, finance, telecommunications, and other service-related industries.

3. Total Economic Activity

The total economic activity across all sectors grew from TZS 39,848,131 million in June 2022 to TZS 47,346,113 million in December 2023. This overall growth highlights the economy's resilience and consistent expansion, with all sectors contributing to the upward trend.

4. Implications for Tanzania's Economic Development

The data reflects a balanced economic development across various sectors, with services emerging as the dominant force, followed by agriculture, industry, and construction. The slight decline in the percentage contribution of industry and construction suggests that while these sectors are growing, they are being outpaced by others, particularly services.

The agriculture sector remains crucial, with its increased percentage contribution indicating that it still plays a significant role in the livelihood of the majority of Tanzanians and in the overall economy. Meanwhile, the consistent growth in manufacturing and mining points to ongoing industrialization and resource exploitation, albeit at a slower pace than other sectors.