Tanzania Investment and Consultant Group Ltd

| Economic Research Centre

Tanzania's GDP performance in 2023
November 4, 2024  
Across different zones and GDP per capita Tanzania's economic landscape in 2023 showcased robust growth, with the national GDP reaching TZS 188,788.1 billion, a significant increase from TZS 170,820 billion in 2022. This growth reflects a 10.5% rise, indicating resilience in various economic sectors despite global challenges. Regionally, the Lake Zone emerged as the largest […]

Across different zones and GDP per capita

Tanzania's economic landscape in 2023 showcased robust growth, with the national GDP reaching TZS 188,788.1 billion, a significant increase from TZS 170,820 billion in 2022. This growth reflects a 10.5% rise, indicating resilience in various economic sectors despite global challenges.

Regionally, the Lake Zone emerged as the largest contributor, generating TZS 48,990.5 billion, which accounts for 25.9% of the national GDP. Following closely were the Dar es Salaam Zone and Northern Zone, contributing TZS 32,189.2 billion (17.1%) and TZS 32,484.9 billion (17.2%), respectively. Other zones, including the Southern Highlands, Central, and South Eastern, contributed TZS 29,859.8 billion (15.8%), TZS 25,521.6 billion (13.5%), and TZS 19,742.1 billion (10.5%), respectively, highlighting disparities in economic activity across the country.

In terms of GDP per capita, Dar es Salaam outpaced other regions significantly, recording TZS 5,743,367. The Northern Zone followed with TZS 3,612,424, and the Southern Highlands reached TZS 3,424,384. The national average stood at TZS 3,058,847, underscoring the economic concentration in urban areas while pointing to opportunities for development in less affluent regions. This distribution emphasizes the need for targeted investment and infrastructure improvements in areas with lower GDP per capita to foster inclusive growth and address regional economic disparities.

  1. Overall National GDP:
    • Total GDP for Tanzania Mainland reached TZS 188,788.1 billion in 2023, up from TZS 170,820 billion in 2022.
  2. Zonal GDP Contribution:
    • Lake Zone: Largest contributor with TZS 48,990.5 billion (25.9% of the national GDP).
    • Dar es Salaam Zone: TZS 32,189.2 billion (17.1%).
    • Northern Zone: TZS 32,484.9 billion (17.2%).
    • Southern Highlands Zone: TZS 29,859.8 billion (15.8%).
    • Central Zone: TZS 25,521.6 billion (13.5%).
    • South Eastern Zone: TZS 19,742.1 billion (10.5%).
  3. GDP per Capita:
    • Dar es Salaam recorded the highest GDP per capita at TZS 5,743,367.
    • Northern Zone (Arusha, Kilimanjaro, Manyara, Tanga) followed with TZS 3,612,424.
    • Southern Highlands Zone (Mbeya, Njombe, Iringa, etc.) reached TZS 3,424,384.
    • The national average GDP per capita was TZS 3,058,847.

Tanzania's GDP highlights several key points

  1. Regional Economic Disparities: Dar es Salaam’s high GDP per capita (TZS 5,743,367) compared to other regions shows a concentration of economic activities in the city. As Tanzania's commercial hub, Dar es Salaam benefits from strong financial, trade, manufacturing, and service sectors, which contrasts with more agriculturally dependent regions.
  2. Lake Zone’s Economic Significance: The Lake Zone, contributing the highest share of national GDP (25.9%), emphasizes the economic importance of agriculture, mining, and fishing, which are dominant in that region. It also highlights potential for growth in other sectors if there are investments in infrastructure and industry.
  3. Potential for Development in Southern Zones: The Southern Highlands and South Eastern zones, despite having large agricultural outputs and rich mineral resources, contribute less to GDP. This suggests untapped potential that could be leveraged with investment in infrastructure, energy, and processing industries to add value to raw products.
  4. National Economic Structure: The dominance of agriculture, trade, transport, and construction as GDP drivers reflects Tanzania's focus on essential industries. However, the high reliance on agriculture makes the economy vulnerable to climate and market fluctuations, underlining the need for economic diversification.
  5. Opportunities for Inclusive Growth: Regions with lower GDP per capita, like the Central and South Eastern zones, may benefit from targeted development initiatives, such as improved access to markets, financial services, and investment in education and skills development. This could promote more balanced growth across the country.

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